Ameriprise Financial (NYSE:AMP) & Bank of New York Mellon (NYSE:BNY) Head-To-Head Survey

Ameriprise Financial (NYSE:AMP) and Bank of New York Mellon (NYSE:BNY) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Earnings and Valuation

This table compares Ameriprise Financial and Bank of New York Mellon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameriprise Financial	$18.48 billion	2.64	$3.56 billion	$41.46	13.11
Bank of New York Mellon	$40.76 billion	2.55	$5.55 billion	$8.59	17.86

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ameriprise Financial and Bank of New York Mellon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameriprise Financial	1	4	4	2	2.64
Bank of New York Mellon	0	6	10	1	2.71

Ameriprise Financial currently has a consensus target price of $555.33, suggesting a potential upside of 2.15%. Bank of New York Mellon has a consensus target price of $157.13, suggesting a potential upside of 2.40%. Given Bank of New York Mellon’s stronger consensus rating and higher possible upside, analysts clearly believe Bank of New York Mellon is more favorable than Ameriprise Financial.

Volatility & Risk

Ameriprise Financial has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Bank of New York Mellon has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Profitability

This table compares Ameriprise Financial and Bank of New York Mellon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameriprise Financial	20.24%	64.19%	2.15%
Bank of New York Mellon	15.52%	16.00%	1.27%

Insider & Institutional Ownership

84.0% of Ameriprise Financial shares are owned by institutional investors. Comparatively, 85.3% of Bank of New York Mellon shares are owned by institutional investors. 0.6% of Ameriprise Financial shares are owned by company insiders. Comparatively, 0.2% of Bank of New York Mellon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Ameriprise Financial pays an annual dividend of $6.80 per share and has a dividend yield of 1.3%. Bank of New York Mellon pays an annual dividend of $2.52 per share and has a dividend yield of 1.6%. Ameriprise Financial pays out 16.4% of its earnings in the form of a dividend. Bank of New York Mellon pays out 29.3% 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. Ameriprise Financial has raised its dividend for 21 consecutive years and Bank of New York Mellon has raised its dividend for 14 consecutive years.

Summary

Ameriprise Financial beats Bank of New York Mellon on 10 of the 18 factors compared between the two stocks.

About Ameriprise Financial

Ameriprise Financial, Inc., together with its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates. The Asset Management segment offers investment management, advice, and products to retail, high net worth, and institutional clients through third-party financial institutions, advisor networks, direct retail, and its institutional sales force under the Columbia Threadneedle Investments brand name. This segment 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 and infrastructure funds. The Retirement & Protection Solutions segment provides variable annuity products, as well as life and disability income insurance products to retail clients. 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.

About Bank of New York Mellon

The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and other segments. The Securities Services segment offers custody, trust and depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, and data analytics. This segment also provides trustee, paying agency, fiduciary, escrow and other financial, issuer, and support services for brokers and investors. The Market and Wealth Services segment offers clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading, and prime brokerage services. This segment also provides integrated cash management solutions, including payments, foreign exchange, liquidity management, receivables processing and payables management, and trade finance and processing services. The Investment and Wealth Management segment offers investment management strategies and distribution of investment products, investment management, custody, wealth and estate planning, private banking, investment, and information management services. The Other segment engages in the provision of leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit services. It serves central banks and sovereigns, financial institutions, asset managers, insurance companies, corporations, local authorities and high net-worth individuals, and family offices. The Bank of New York Mellon Corporation was founded in 1784 and is headquartered in New York, New York.