Head to Head Review: Safeguard Scientifics (SFE) vs. Affiliated Managers Group (AMG)
Safeguard Scientifics (NYSE: SFE) and Affiliated Managers Group (NYSE:AMG) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Institutional & Insider Ownership
77.6% of Safeguard Scientifics shares are owned by institutional investors. Comparatively, 96.2% of Affiliated Managers Group shares are owned by institutional investors. 2.7% of Safeguard Scientifics shares are owned by insiders. Comparatively, 1.4% of Affiliated Managers Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Affiliated Managers Group pays an annual dividend of $0.80 per share and has a dividend yield of 0.4%. Safeguard Scientifics does not pay a dividend. Affiliated Managers Group pays out 8.9% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Safeguard Scientifics and Affiliated Managers Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Safeguard Scientifics||N/A||N/A||-$17.72 million||($4.76)||-2.72|
|Affiliated Managers Group||$2.21 billion||4.64||$842.60 million||$9.02||20.31|
Affiliated Managers Group has higher revenue and earnings than Safeguard Scientifics. Safeguard Scientifics 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.
Risk and Volatility
Safeguard Scientifics has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Affiliated Managers Group has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Safeguard Scientifics and Affiliated Managers Group, 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|
Affiliated Managers Group has a consensus price target of $196.86, suggesting a potential upside of 7.48%. Given Affiliated Managers Group’s higher possible upside, analysts plainly believe Affiliated Managers Group is more favorable than Safeguard Scientifics.
This table compares Safeguard Scientifics and Affiliated Managers 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%|
Affiliated Managers Group beats Safeguard Scientifics on 11 of the 13 factors compared between the two stocks.
About Safeguard Scientifics
Safeguard Scientifics, Inc. is engaged in providing capital to technology companies within the fields of healthcare, financial services and digital media. The Company holds interest in companies, which it refers to as partner companies. As of December 31, 2016, the Company held interests in 29 non-consolidated partner companies. The Company offers operational and management support to each of its partner companies. In addition to management and operational support, the Company offers ongoing planning and development assessment. It provides mentoring, advice and guidance to develop partner company management. The Company serves on the boards of directors of its partner companies, working with them to develop and implement strategic and operating plans. It measures and monitors achievement of these plans through regular review of operational and financial performance measurements.
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.
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