Brightsphere Investment Group (NYSE:BSIG) and Affiliated Managers Group (NYSE:AMG) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
Insider & Institutional Ownership
1.3% of Brightsphere Investment Group shares are held by institutional investors. Comparatively, 94.0% of Affiliated Managers Group shares are held by institutional investors. 0.6% of Brightsphere Investment Group shares are held by company insiders. Comparatively, 0.9% of Affiliated Managers Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Brightsphere Investment Group pays an annual dividend of $0.18 per share and has a dividend yield of 1.4%. Affiliated Managers Group pays an annual dividend of $1.20 per share and has a dividend yield of 0.9%. Brightsphere Investment Group pays out 11.1% of its earnings in the form of a dividend. Affiliated Managers Group pays out 8.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a breakdown of current recommendations for Brightsphere Investment Group and Affiliated Managers Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brightsphere Investment Group||0||1||5||0||2.83|
|Affiliated Managers Group||0||2||5||0||2.71|
Brightsphere Investment Group presently has a consensus price target of $19.67, suggesting a potential upside of 52.10%. Affiliated Managers Group has a consensus price target of $205.14, suggesting a potential upside of 53.61%. Given Affiliated Managers Group’s higher probable upside, analysts plainly believe Affiliated Managers Group is more favorable than Brightsphere Investment Group.
Valuation & Earnings
This table compares Brightsphere Investment Group and Affiliated Managers Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brightsphere Investment Group||$887.40 million||1.60||$4.20 million||$1.62||7.98|
|Affiliated Managers Group||$2.31 billion||3.10||$689.50 million||$14.60||9.15|
Affiliated Managers Group has higher revenue and earnings than Brightsphere Investment Group. Brightsphere Investment Group is trading at a lower price-to-earnings ratio than Affiliated Managers Group, indicating that it is currently the more affordable of the two stocks.
This table compares Brightsphere Investment Group and Affiliated Managers Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brightsphere Investment Group||3.06%||138.53%||13.71%|
|Affiliated Managers Group||29.59%||19.44%||10.02%|
Affiliated Managers Group beats Brightsphere Investment Group on 10 of the 14 factors compared between the two stocks.
Brightsphere Investment Group Company Profile
BrightSphere Investment Group plc is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as OM Asset Management plc. BrightSphere Investment Group plc operates as a former subsidiary of Old Mutual Global Investors.
Affiliated Managers Group Company Profile
Affiliated Managers Group, Inc., through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. It provides advisory or subadvisory services to mutual funds. These funds are distributed to retail and institutional clients directly and through intermediaries, including independent investment advisors, retirement plan sponsors, broker-dealers, major fund marketplaces, and bank trust departments. The company also offers investment products in various investment styles in the institutional distribution channel, including small, small/mid, mid, and large capitalization value and growth equity, and emerging markets. In addition, it offers quantitative, alternative, and fixed income products, and manages assets for foundations and endowments, defined benefit, and defined contribution plans for corporations and municipalities. Affiliated Managers Group provides investment management or customized investment counseling and fiduciary services. The company was formed as a corporation under the laws of Delaware in 1993. Affiliated Managers Group is based in Prides Crossing, Massachusetts.
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