Comparing Affiliated Managers Group (AMG) & UBS (NYSE:UBS)

Affiliated Managers Group (NYSE: AMG) and UBS (NYSE:UBS) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Dividends

Affiliated Managers Group pays an annual dividend of $0.80 per share and has a dividend yield of 0.4%. UBS pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. Affiliated Managers Group pays out 8.7% of its earnings in the form of a dividend. UBS pays out 55.0% 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. Affiliated Managers Group has increased its dividend for 4 consecutive years.

Earnings & Valuation

This table compares Affiliated Managers Group and UBS’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Affiliated Managers Group $2.19 billion 5.00 $472.80 million $9.24 21.36
UBS $36.28 billion 1.84 $3.25 billion $1.09 15.93

UBS has higher revenue and earnings than Affiliated Managers Group. UBS 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Affiliated Managers Group 23.29% 17.63% 8.93%
UBS 11.28% 8.01% 0.47%

Volatility and Risk

Affiliated Managers Group has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, UBS has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Institutional & Insider Ownership

95.8% of Affiliated Managers Group shares are held by institutional investors. Comparatively, 32.0% of UBS shares are held by institutional investors. 1.4% of Affiliated Managers Group shares are held by company insiders. Comparatively, 1.0% of UBS 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.

Analyst Ratings

This is a breakdown of current recommendations for Affiliated Managers Group and UBS, 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
UBS 0 3 5 0 2.63

Affiliated Managers Group presently has a consensus target price of $206.43, suggesting a potential upside of 4.59%. Given Affiliated Managers Group’s stronger consensus rating and higher possible upside, analysts clearly believe Affiliated Managers Group is more favorable than UBS.

Summary

Affiliated Managers Group beats UBS on 12 of the 16 factors compared between the two stocks.

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.

About UBS

UBS Group AG is a holding company and conducts its operations through UBS AG and its subsidiaries. The Company comprises Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. Wealth Management division provides advice and tailored financial services to wealthy private clients around the world, except those served by Wealth Management Americas. Wealth Management Americas division is a wealth manager in the Americas in terms of financial advisor productivity and invested assets by financial advisor. Personal & Corporate Banking division provides financial products and services to private, corporate and institutional clients in Switzerland. Asset Management division provides investment management products and services, platform solutions and advisory support. Investment Bank division provides investment advice, financial solutions and capital markets access.

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