Head to Head Review: Amalgamated Financial (AMAL) & The Competition

Amalgamated Financial (NASDAQ:AMAL) is one of 919 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare Amalgamated Financial to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Profitability

This table compares Amalgamated Financial and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amalgamated Financial	24.57%	14.91%	1.31%
Amalgamated Financial Competitors	15.64%	9.43%	0.93%

Valuation & Earnings

This table compares Amalgamated Financial and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amalgamated Financial	$453.17 million	$104.45 million	12.29
Amalgamated Financial Competitors	$37.93 billion	$2.42 billion	21.38

Amalgamated Financial’s peers have higher revenue and earnings than Amalgamated Financial. Amalgamated Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Amalgamated Financial pays an annual dividend of $0.68 per share and has a dividend yield of 1.4%. Amalgamated Financial pays out 16.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Amalgamated Financial has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Amalgamated Financial and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amalgamated Financial	0	2	3	0	2.60
Amalgamated Financial Competitors	7492	30246	27845	1488	2.35

Amalgamated Financial currently has a consensus price target of $54.00, suggesting a potential upside of 7.96%. As a group, “Banks” companies have a potential upside of 14.33%. Given Amalgamated Financial’s peers higher possible upside, analysts plainly believe Amalgamated Financial has less favorable growth aspects than its peers.

Volatility & Risk

Amalgamated Financial has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Amalgamated Financial’s peers have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

75.9% of Amalgamated Financial shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 1.6% of Amalgamated Financial shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Amalgamated Financial beats its peers on 8 of the 15 factors compared.

About Amalgamated Financial

Amalgamated Financial Corp. is the bank holding company for Amalgamated Bank, a full-service commercial bank headquartered in New York City. Founded in 1923 by the Amalgamated Clothing Workers of America, the bank has a long history of serving labor organizations and working people. The bank provides commercial and consumer banking services, including deposit accounts, lending, cash management and online banking. Its clients include businesses, nonprofit organizations, labor unions, political and advocacy groups, and individuals, with a particular focus on organizations connected to social and economic causes.