Ameriprise Financial (NYSE:AMP) and Medley Management (NYSE:MDLY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Ameriprise Financial and Medley Management, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Ameriprise Financial | 0 | 1 | 8 | 0 | 2.89 |
Medley Management | 0 | 0 | 0 | 0 | N/A |
Ameriprise Financial presently has a consensus price target of $212.20, indicating a potential downside of 14.70%. Given Ameriprise Financial's higher probable upside, equities analysts plainly believe Ameriprise Financial is more favorable than Medley Management.
Valuation and Earnings
This table compares Ameriprise Financial and Medley Management's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Ameriprise Financial | $12.97 billion | 2.24 | $1.89 billion | $16.10 | 15.45 |
Medley Management | $48.84 million | 0.09 | $-3,380,000.00 | N/A | N/A |
Ameriprise Financial has higher revenue and earnings than Medley Management.
Institutional and Insider Ownership
83.1% of Ameriprise Financial shares are held by institutional investors. 1.5% of Ameriprise Financial shares are held by company insiders. Comparatively, 5.7% of Medley Management shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Ameriprise Financial has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Medley Management has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500.
Profitability
This table compares Ameriprise Financial and Medley Management's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Ameriprise Financial | 15.16% | 33.79% | 1.38% |
Medley Management | -13.19% | N/A | -17.43% |
Summary
Ameriprise Financial beats Medley Management on 10 of the 12 factors compared between the two stocks.