Pzena Investment Management (PZN) versus Affiliated Managers Group (AMG) Head-To-Head Comparison

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

Dividends

Affiliated Managers Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.0%. Pzena Investment Management pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Affiliated Managers Group pays out 8.2% of its earnings in the form of a dividend. Pzena Investment Management pays out 19.0% 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.

Valuation & Earnings

This table compares Affiliated Managers Group and Pzena Investment Management’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Affiliated Managers Group $2.31 billion 2.72 $689.50 million $14.60 8.03
Pzena Investment Management $141.29 million 4.96 $6.90 million $0.63 16.02

Affiliated Managers Group has higher revenue and earnings than Pzena Investment Management. Affiliated Managers Group is trading at a lower price-to-earnings ratio than Pzena Investment Management, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Affiliated Managers Group has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Pzena Investment Management has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Affiliated Managers Group and Pzena Investment Management, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Affiliated Managers Group 0 2 5 0 2.71
Pzena Investment Management 0 0 0 0 N/A

Affiliated Managers Group currently has a consensus price target of $185.57, suggesting a potential upside of 58.32%. Given Affiliated Managers Group’s higher possible upside, equities research analysts plainly believe Affiliated Managers Group is more favorable than Pzena Investment Management.

Profitability

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

Net Margins Return on Equity Return on Assets
Affiliated Managers Group 29.38% 19.37% 9.98%
Pzena Investment Management 6.54% 16.27% 9.69%

Insider and Institutional Ownership

93.3% of Affiliated Managers Group shares are held by institutional investors. Comparatively, 17.3% of Pzena Investment Management shares are held by institutional investors. 0.9% of Affiliated Managers Group shares are held by company insiders. Comparatively, 50.5% of Pzena Investment Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Affiliated Managers Group beats Pzena Investment Management on 10 of the 15 factors compared between the two stocks.

Affiliated Managers Group Company Profile

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.

Pzena Investment Management Company Profile

Pzena Investment Management, Inc. is a publicly owned investment manager. The firm manages equity mutual funds for its clients. It invests in the public equity markets. Pzena Investment Management, Inc. was founded in 2007 and is based in New York City with additional offices in Melbourne, Australia and London, United Kingdom.

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