Moelis & Co (NYSE:MC) and Ameriprise Financial (NYSE:AMP) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Volatility and Risk
Moelis & Co has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500. Comparatively, Ameriprise Financial has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.
75.6% of Moelis & Co shares are owned by institutional investors. Comparatively, 81.6% of Ameriprise Financial shares are owned by institutional investors. 29.9% of Moelis & Co shares are owned by company insiders. Comparatively, 1.5% of Ameriprise Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Moelis & Co and Ameriprise Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Moelis & Co||$684.61 million||3.18||$29.40 million||$2.29||16.89|
|Ameriprise Financial||$12.03 billion||1.34||$1.48 billion||$12.27||9.44|
Ameriprise Financial has higher revenue and earnings than Moelis & Co. Ameriprise Financial is trading at a lower price-to-earnings ratio than Moelis & Co, indicating that it is currently the more affordable of the two stocks.
Moelis & Co pays an annual dividend of $1.88 per share and has a dividend yield of 4.9%. Ameriprise Financial pays an annual dividend of $3.60 per share and has a dividend yield of 3.1%. Moelis & Co pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ameriprise Financial pays out 29.3% of its earnings in the form of a dividend. Moelis & Co has raised its dividend for 3 consecutive years and Ameriprise Financial has raised its dividend for 8 consecutive years.
This table compares Moelis & Co and Ameriprise Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Moelis & Co||9.39%||53.14%||24.46%|
This is a summary of current ratings and price targets for Moelis & Co and Ameriprise Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Moelis & Co||0||2||5||0||2.71|
Moelis & Co presently has a consensus price target of $58.43, indicating a potential upside of 51.06%. Ameriprise Financial has a consensus price target of $159.14, indicating a potential upside of 37.41%. Given Moelis & Co’s stronger consensus rating and higher probable upside, analysts clearly believe Moelis & Co is more favorable than Ameriprise Financial.
Moelis & Co beats Ameriprise Financial on 10 of the 17 factors compared between the two stocks.
Moelis & Co Company Profile
Moelis & Company is a global investment bank. The firm provides services relating to mergers & acquisitions, recapitalization & restructuring, capital markets and financial institution advisory; private funds; shareholder defense and strategic alliances. The firm's expertise is into global energy; IPO advisory; technology, media, telecommunication sectors. The firm serves clients from 19 geographic locations in the Americas, Europe, the Middle East, Asia and Australia. The firm supports clients through all phases of the business cycle. Moelis & Company was founded in 2007 and is headquartered in New York, New York with additional offices in the United States; Europe; Asia; Australia and Middle East
Ameriprise Financial Company Profile
Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through Advice & Wealth Management, Asset Management, Annuities, and Protection segments. The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services primarily to retail clients through its advisors. The Asset Management segment offers investment management and advice, and investment products to retail, high net worth, and institutional clients through unaffiliated third party financial institutions and institutional sales force. This segment's products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property funds. The Annuities segment provides variable and fixed annuity products to individual clients through affiliated and unaffiliated advisors, and financial institutions. The Protection segment offers various products to address the protection and risk management needs of retail clients, including life, disability income, and property casualty insurance through advisors and affinity relationships. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.
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