Reviewing Affiliated Managers Group (AMG) & Its Competitors

Affiliated Managers Group (NYSE: AMG) is one of 53 public companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its competitors? We will compare Affiliated Managers Group to related companies based on the strength of its valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Dividends

Affiliated Managers Group pays an annual dividend of $0.80 per share and has a dividend yield of 0.4%. Affiliated Managers Group pays out 8.9% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.8% and pay out 49.4% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Affiliated Managers Group and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Affiliated Managers Group 0 2 5 0 2.71
Affiliated Managers Group Competitors 358 1781 1799 62 2.39

Affiliated Managers Group presently has a consensus price target of $196.86, suggesting a potential upside of 7.48%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 6.26%. Given Affiliated Managers Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Affiliated Managers Group is more favorable than its competitors.

Volatility & Risk

Affiliated Managers Group has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Affiliated Managers Group’s competitors have a beta of 1.23, meaning that their average share price is 23% more volatile than the S&P 500.

Institutional & Insider Ownership

96.2% of Affiliated Managers Group shares are held by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 1.4% of Affiliated Managers Group shares are held by insiders. Comparatively, 10.4% of shares of all “Investment Management & Fund Operators” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Affiliated Managers Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Affiliated Managers Group 22.99% 17.45% 8.75%
Affiliated Managers Group Competitors -46.80% 10.51% 5.77%

Earnings and Valuation

This table compares Affiliated Managers Group and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Affiliated Managers Group $2.21 billion $842.60 million 20.31
Affiliated Managers Group Competitors $3.00 billion $961.92 million 6.72

Affiliated Managers Group’s competitors have higher revenue and earnings than Affiliated Managers Group. Affiliated Managers Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Affiliated Managers Group beats its competitors on 10 of the 15 factors compared.

About Affiliated Managers Group

Affiliated Managers Group, Inc. is an asset management company with equity investments in boutique investment management firms. The Company operates in three segments, which represent its principal distribution channels: Institutional, Mutual Fund and High Net Worth. The equity method investments in the Institutional distribution channel are made in relationships with public and private client entities, including foundations, endowments, sovereign wealth funds and retirement plans for corporations and municipalities. The equity method investments in the Mutual Fund distribution channel are made in advisory or sub-advisory relationships with active return-oriented mutual funds, Undertakings for Collective Investment in Transferable Securities and other retail products. The equity method investments in the High Net Worth distribution channel are made in relationships with high net worth and ultra-high net worth individuals, families, trusts, foundations, endowments and retirement plans.

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