Comparing PJT Partners (PJT) & Ameriprise Financial (AMP)

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PJT Partners (NYSE:PJT) and Ameriprise Financial (NYSE:AMP) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Dividends

PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Ameriprise Financial pays an annual dividend of $3.88 per share and has a dividend yield of 2.7%. PJT Partners pays out 10.5% of its earnings in the form of a dividend. Ameriprise Financial pays out 26.0% 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. Ameriprise Financial has raised its dividend for 9 consecutive years. Ameriprise Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares PJT Partners and Ameriprise Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PJT Partners 4.01% 15.66% 11.31%
Ameriprise Financial 14.85% 37.97% 1.51%

Earnings and Valuation

This table compares PJT Partners and Ameriprise Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PJT Partners $580.25 million 1.57 $42.56 million $1.91 20.91
Ameriprise Financial $12.84 billion 1.48 $2.10 billion $14.94 9.52

Ameriprise Financial has higher revenue and earnings than PJT Partners. Ameriprise Financial is trading at a lower price-to-earnings ratio than PJT Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for PJT Partners and Ameriprise Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PJT Partners 0 1 2 0 2.67
Ameriprise Financial 0 1 7 0 2.88

PJT Partners currently has a consensus target price of $59.00, indicating a potential upside of 47.76%. Ameriprise Financial has a consensus target price of $171.50, indicating a potential upside of 20.56%. Given PJT Partners’ higher possible upside, analysts clearly believe PJT Partners is more favorable than Ameriprise Financial.

Volatility and Risk

PJT Partners has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Ameriprise Financial has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Institutional and Insider Ownership

64.8% of PJT Partners shares are owned by institutional investors. Comparatively, 85.7% of Ameriprise Financial shares are owned by institutional investors. 3.0% of PJT Partners shares are owned by company insiders. Comparatively, 1.9% of Ameriprise Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Ameriprise Financial beats PJT Partners on 11 of the 17 factors compared between the two stocks.

About PJT Partners

PJT Partners Inc., an investment bank, provides various strategic advisory, shareholder engagement, restructuring and special situations, and private fund advisory and placement services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers a range of financial advisory and transaction execution capability, including mergers and acquisitions, joint ventures, minority investments, asset swaps, divestitures, takeover defenses, corporate finance advisory, private placements, and distressed sales. The company also advices companies, creditors, and financial sponsors on recapitalizations, reorganizations, exchange offers, debt repurchases, capital raises, and distressed mergers and acquisitions. In addition, it offers private fund advisory and placement services for various investment strategies, including private equity, hedge fund, real estate, and secondary advisory groups. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. is headquartered in New York, New York.

About Ameriprise Financial

Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through five segments: Advice & Wealth Management, Asset Management, Annuities, Protection, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services primarily to retail clients through its advisors. The Asset Management segment offers investment management and advice, and investment products to retail, high net worth, and institutional clients through unaffiliated third party financial institutions and institutional sales force. Its products also include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property funds. The Annuities segment provides variable and fixed annuity products to individual clients through affiliated and unaffiliated advisors, and financial institutions. The Protection segment offers various products to address the protection and risk management needs of retail clients, including life, disability income, and property casualty insurance through advisors and affinity relationships. The Corporate & Other segment consist of long term care business, net investment income or loss on corporate level assets. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.

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