Victory Capital (NASDAQ:VCTR) and Affiliated Managers Group (NYSE:AMG) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.
Dividends
Victory Capital pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Affiliated Managers Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Victory Capital pays out 11.3% of its earnings in the form of a dividend. Affiliated Managers Group pays out 0.3% 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. Victory Capital has raised its dividend for 1 consecutive years and Affiliated Managers Group has raised its dividend for 1 consecutive years.
Volatility & Risk
Victory Capital has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Affiliated Managers Group has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.
Profitability
This table compares Victory Capital and Affiliated Managers Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Victory Capital | 24.60% | 42.30% | 14.49% |
Affiliated Managers Group | 5.37% | 19.15% | 8.64% |
Valuation & Earnings
This table compares Victory Capital and Affiliated Managers Group's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Victory Capital | $612.37 million | 2.75 | $92.49 million | $2.48 | 10.06 |
Affiliated Managers Group | $2.24 billion | 2.66 | $15.70 million | $14.22 | 9.82 |
Victory Capital has higher earnings, but lower revenue than Affiliated Managers Group. Affiliated Managers Group is trading at a lower price-to-earnings ratio than Victory Capital, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for Victory Capital and Affiliated Managers Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Victory Capital | 2 | 3 | 3 | 0 | 2.13 |
Affiliated Managers Group | 1 | 2 | 3 | 0 | 2.33 |
Victory Capital presently has a consensus price target of $20.8214, indicating a potential downside of 16.81%. Affiliated Managers Group has a consensus price target of $115.00, indicating a potential downside of 18.34%. Given Victory Capital's higher probable upside, research analysts clearly believe Victory Capital is more favorable than Affiliated Managers Group.
Insider & Institutional Ownership
16.9% of Victory Capital shares are held by institutional investors. Comparatively, 98.8% of Affiliated Managers Group shares are held by institutional investors. 10.2% of Victory Capital shares are held by company insiders. Comparatively, 1.7% of Affiliated Managers Group shares are held by company 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.
Summary
Victory Capital beats Affiliated Managers Group on 8 of the 15 factors compared between the two stocks.