Comparing Affiliated Managers Group (NYSE:AMG) & Schroders (OTCMKTS:SHNWF)

Schroders (OTCMKTS:SHNWF) and Affiliated Managers Group (NYSE:AMG) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares Schroders and Affiliated Managers Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schroders	$3.80 billion	3.38	$532.88 million	N/A	N/A
Affiliated Managers Group	$2.07 billion	4.36	$716.60 million	$23.08	13.95

Affiliated Managers Group has lower revenue, but higher earnings than Schroders.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Schroders	N/A	N/A	N/A
Affiliated Managers Group	34.55%	18.45%	8.63%

Analyst Recommendations

This is a breakdown of current ratings for Schroders and Affiliated Managers Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schroders	1	3	2	0	2.17
Affiliated Managers Group	0	1	7	0	2.88

Affiliated Managers Group has a consensus target price of $350.14, indicating a potential upside of 8.78%. Given Affiliated Managers Group’s stronger consensus rating and higher probable upside, analysts clearly believe Affiliated Managers Group is more favorable than Schroders.

Insider & Institutional Ownership

95.3% of Affiliated Managers Group shares are held by institutional investors. 4.2% of Affiliated Managers Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Schroders has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Affiliated Managers Group has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Summary

Affiliated Managers Group beats Schroders on 11 of the 12 factors compared between the two stocks.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm’s alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. The company was formerly known as New Schroders plc and changed its name to Schroders plc in April 2000. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.

About Affiliated Managers Group

Affiliated Managers Group, Inc., through its affiliates, operates as an investment management company providing investment management services to mutual funds, institutional clients,retails and high net worth individuals in the United States. It provides advisory or sub-advisory services to mutual funds. These funds are distributed to retail, high net worth 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. Affiliated Managers Group, Inc. was formed in 1993 and is based in West Palm Beach, Florida with additional offices in Prides Crossing, Massachusetts; Stamford, Connecticut; London, United Kingdom; Dubai, United Arab Emirates; Sydney, Australia; Hong Kong; Tokyo, Japan, Zurich, Switzerland and Delaware.