Manning and Napier (NYSE: AMP) and Ameriprise Financial (NYSE:AMP) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Insider & Institutional Ownership

51.5% of Manning and Napier shares are held by institutional investors. Comparatively, 81.4% of Ameriprise Financial shares are held by institutional investors. 3.4% of Manning and Napier shares are held by company insiders. Comparatively, 1.5% of Ameriprise Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Manning and Napier has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Ameriprise Financial has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Manning and Napier and Ameriprise Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manning and Napier 0 1 0 0 2.00
Ameriprise Financial 0 5 3 0 2.38

Manning and Napier presently has a consensus target price of $4.00, suggesting a potential upside of 45.45%. Ameriprise Financial has a consensus target price of $166.00, suggesting a potential upside of 12.57%. Given Manning and Napier’s higher probable upside, equities research analysts plainly believe Manning and Napier is more favorable than Ameriprise Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
Manning and Napier 1.12% 15.05% 10.35%
Ameriprise Financial 13.91% 36.15% 1.48%

Earnings & Valuation

This table compares Manning and Napier and Ameriprise Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manning and Napier $201.53 million 0.21 $3.58 million $0.40 6.88
Ameriprise Financial $12.03 billion 1.74 $1.48 billion $12.27 12.02

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

Dividends

Manning and Napier pays an annual dividend of $0.32 per share and has a dividend yield of 11.6%. Ameriprise Financial pays an annual dividend of $3.60 per share and has a dividend yield of 2.4%. Manning and Napier pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ameriprise Financial pays out 29.3% of its earnings in the form of a dividend. Ameriprise Financial has raised its dividend for 8 consecutive years.

Summary

Ameriprise Financial beats Manning and Napier on 13 of the 17 factors compared between the two stocks.

About Manning and Napier

Manning & Napier, Inc. is publicly owned investment manager. It provides its services to net worth individuals and institutions, including 401(k) plans, pension plans, taft-hartley plans, endowments and foundations. The firm manages separate client-focused equity and fixed income portfolios. It invests in the public equity and fixed income markets of the United States. The firm employs fundamental analysis along with a combination of bottom-up and top-down stock picking approach to create its portfolios. Manning & Napier, Inc. was founded in 1970 and is based in Fairport, New York with additional offices in Dublin, Ohio; St. Petersburg, Florida; and Chicago, Illinois.

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 Advice & Wealth Management, Asset Management, Annuities, and Protection segments. 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. This segment's products 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 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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