Critical Contrast: Affiliated Managers Group (AMG) vs. Janus Capital Group (JNS)

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

Dividends

Affiliated Managers Group pays an annual dividend of $0.80 per share and has a dividend yield of 0.4%. Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Affiliated Managers Group pays out 8.9% of its earnings in the form of a dividend. Janus Capital Group pays out 55.7% 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 6 consecutive years.

Insider & Institutional Ownership

96.2% of Affiliated Managers Group shares are held by institutional investors. Comparatively, 90.2% of Janus Capital Group shares are held by institutional investors. 1.4% of Affiliated Managers Group shares are held by insiders. Comparatively, 2.1% of Janus Capital Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Affiliated Managers Group has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Janus Capital Group has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Affiliated Managers Group 22.99% 17.45% 8.75%
Janus Capital Group 12.54% 7.26% 4.48%

Valuation and Earnings

This table compares Affiliated Managers Group and Janus Capital Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Affiliated Managers Group $2.21 billion 4.95 $842.60 million $9.02 21.67
Janus Capital Group N/A N/A N/A $0.79 18.04

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Affiliated Managers Group and Janus Capital Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Affiliated Managers Group 0 2 5 0 2.71
Janus Capital Group 1 4 0 0 1.80

Affiliated Managers Group currently has a consensus target price of $206.43, suggesting a potential upside of 5.61%. Janus Capital Group has a consensus target price of $13.33, suggesting a potential downside of 6.43%. Given Affiliated Managers Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Affiliated Managers Group is more favorable than Janus Capital Group.

Summary

Affiliated Managers Group beats Janus Capital Group on 12 of the 14 factors compared between the two stocks.

Affiliated Managers Group Company Profile

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.

Janus Capital Group Company Profile

Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.

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