Financial Review: Acadian Asset Management (NYSE:AAMI) vs. Ponce Financial Group (NASDAQ:PDLB)

Acadian Asset Management (NYSE:AAMIGet Free Report) and Ponce Financial Group (NASDAQ:PDLBGet Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Risk and Volatility

Acadian Asset Management has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Ponce Financial Group has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Valuation and Earnings

This table compares Acadian Asset Management and Ponce Financial Group”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acadian Asset Management $563.70 million 3.47 $80.00 million $2.21 24.76
Ponce Financial Group $194.94 million 2.04 $28.70 million $1.19 13.93

Acadian Asset Management has higher revenue and earnings than Ponce Financial Group. Ponce Financial Group is trading at a lower price-to-earnings ratio than Acadian Asset Management, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

98.7% of Acadian Asset Management shares are owned by institutional investors. Comparatively, 64.4% of Ponce Financial Group shares are owned by institutional investors. 26.0% of Acadian Asset Management shares are owned by insiders. Comparatively, 6.7% of Ponce Financial 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.

Profitability

This table compares Acadian Asset Management and Ponce Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acadian Asset Management 14.19% 165.86% 16.94%
Ponce Financial Group 14.72% 9.68% 0.92%

Analyst Ratings

This is a breakdown of current ratings and target prices for Acadian Asset Management and Ponce Financial Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acadian Asset Management 0 4 1 0 2.20
Ponce Financial Group 0 1 1 1 3.00

Acadian Asset Management currently has a consensus price target of $52.00, suggesting a potential downside of 4.99%. Given Acadian Asset Management’s higher possible upside, equities research analysts clearly believe Acadian Asset Management is more favorable than Ponce Financial Group.

Summary

Acadian Asset Management beats Ponce Financial Group on 11 of the 14 factors compared between the two stocks.

About Acadian Asset Management

(Get Free Report)

Acadian Asset Management Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.

About Ponce Financial Group

(Get Free Report)

Ponce Financial Group, Inc. operates as the bank holding company for Ponce Bank that provides various banking products and services. It offers various deposit products, including demand accounts, NOW/IOLA, money market, reciprocal deposits, savings accounts, and certificates of deposit to individuals, business entities, and non-profit organizations, as well as individual retirement accounts. The company also provides real estate-secured loans, which includes one-to-four family investor-owned and owner-occupied residential; multifamily residential; nonresidential property; construction and land; commercial and industrial; and business and consumer loans, as well as lines of credit. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or owned enterprises, as well as corporate securities, mortgage-backed securities, and Federal Home Loan Bank stock. Ponce Financial Group, Inc. was founded in 1960 and is headquartered in Bronx, New York.

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