Analyzing Affiliated Managers Group (AMG) and Victory Capital (VCTR)

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Affiliated Managers Group (NYSE: AMG) and Victory Capital (NASDAQ:VCTR) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Earnings & Valuation

This table compares Affiliated Managers Group and Victory Capital’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Affiliated Managers Group $2.31 billion 3.53 $689.50 million $14.60 10.26
Victory Capital $409.63 million 1.67 $25.82 million $1.25 8.06

Affiliated Managers Group has higher revenue and earnings than Victory Capital. Victory Capital 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.

Dividends

Affiliated Managers Group pays an annual dividend of $1.20 per share and has a dividend yield of 0.8%. Victory Capital does not pay a dividend. Affiliated Managers Group pays out 8.2% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Affiliated Managers Group 30.34% 19.27% 9.90%
Victory Capital N/A N/A N/A

Analyst Ratings

This is a summary of current ratings and target prices for Affiliated Managers Group and Victory Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Affiliated Managers Group 0 3 4 0 2.57
Victory Capital 0 3 6 0 2.67

Affiliated Managers Group presently has a consensus price target of $213.57, suggesting a potential upside of 42.57%. Victory Capital has a consensus price target of $15.31, suggesting a potential upside of 52.06%. Given Victory Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Victory Capital is more favorable than Affiliated Managers Group.

Institutional and Insider Ownership

94.5% of Affiliated Managers Group shares are held by institutional investors. Comparatively, 16.0% of Victory Capital shares are held by institutional investors. 0.9% of Affiliated Managers Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Affiliated Managers Group beats Victory Capital on 11 of the 15 factors compared between the two stocks.

About Affiliated Managers Group

Affiliated Managers Group, Inc., through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. It provides advisory or subadvisory services to mutual funds. These funds are distributed to retail and institutional clients directly and through intermediaries, including independent investment advisors, retirement plan sponsors, broker-dealers, major fund marketplaces, and bank trust departments. The company also offers investment products in various investment styles in the institutional distribution channel, including small, small/mid, mid, and large capitalization value and growth equity, and emerging markets. In addition, it offers quantitative, alternative, and fixed income products, and manages assets for foundations and endowments, defined benefit, and defined contribution plans for corporations and municipalities. Affiliated Managers Group provides investment management or customized investment counseling and fiduciary services. The company was formed as a corporation under the laws of Delaware in 1993. Affiliated Managers Group is based in Prides Crossing, Massachusetts.

About Victory Capital

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an independent investment management company in the United States. It offers investment advisory, fund administration, and distribution services through broker-dealers, retirement platforms, and registered investment advisor networks. As of September 30, 2017, its franchises and solutions platform managed a set of 70 investment strategies for a range of institutional and retail clients. The company was founded in 2013 and is based in Brooklyn, Ohio.

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