Ameriprise Financial (NYSE: AMP) and Diamond Hill Investment Group (NASDAQ:DHIL) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.
Ameriprise Financial pays an annual dividend of $3.32 per share and has a dividend yield of 2.0%. Diamond Hill Investment Group does not pay a dividend. Ameriprise Financial pays out 28.8% of its earnings in the form of a dividend. Ameriprise Financial has raised its dividend for 8 consecutive years.
Ameriprise Financial has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500. Comparatively, Diamond Hill Investment Group has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.
This table compares Ameriprise Financial and Diamond Hill Investment Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diamond Hill Investment Group||34.43%||29.19%||21.13%|
This is a breakdown of recent ratings and price targets for Ameriprise Financial and Diamond Hill Investment Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diamond Hill Investment Group||0||0||0||0||N/A|
Ameriprise Financial currently has a consensus target price of $161.23, indicating a potential downside of 0.67%. Given Ameriprise Financial’s higher possible upside, analysts clearly believe Ameriprise Financial is more favorable than Diamond Hill Investment Group.
Earnings & Valuation
This table compares Ameriprise Financial and Diamond Hill Investment Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ameriprise Financial||$12.03 billion||2.00||$1.48 billion||$11.51||14.10|
|Diamond Hill Investment Group||$145.20 million||5.08||$49.98 million||$14.47||14.61|
Ameriprise Financial has higher revenue and earnings than Diamond Hill Investment Group. Ameriprise Financial is trading at a lower price-to-earnings ratio than Diamond Hill Investment Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
80.5% of Ameriprise Financial shares are held by institutional investors. Comparatively, 62.3% of Diamond Hill Investment Group shares are held by institutional investors. 1.5% of Ameriprise Financial shares are held by insiders. Comparatively, 7.3% of Diamond Hill Investment Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Ameriprise Financial beats Diamond Hill Investment Group on 9 of the 16 factors compared between the two stocks.
About Ameriprise Financial
Ameriprise Financial, Inc. is a financial services company that offers financial solutions to individual and institutional clients. The Company operates in five segments: Advice & Wealth Management; Asset Management; Annuities; Protection, and Corporate & Other. The Company uses Ameriprise Financial as its enterprise brand, as well as the name of its advisor network and certain of its retail products and services. The retail products and services that use the Ameriprise Financial brand include those that it provides through its advisors (financial planning, investment advisory accounts and retail brokerage services) and products and services that the Company markets directly to consumers or through affinity groups (personal auto and home insurance). The Company uses its RiverSource brand for its annuity and protection products issued by the RiverSource Life companies, including its life and disability income insurance products.
About Diamond Hill Investment Group
Diamond Hill Investment Group, Inc. provides investment advisory and fund administration services. The Company’s subsidiaries include Diamond Hill Capital Management, Inc. (DHCM), Beacon Hill Fund Services, Inc. (BHFS) and BHIL Distributors, Inc. (BHIL). The Company’s primary objective is to fulfill its fiduciary duty to clients. The Company provides investment management and administration services to mutual funds, institutional accounts and private investment funds. DHCM is an investment advisor to the Diamond Hill Funds (the Funds), a series of open-end mutual funds, private investment funds (Private Funds), an exchange traded fund and other institutional accounts. In addition, DHCM is administrator for the Funds. BHFS provides compliance, treasury and other fund administration services to investment advisors and mutual funds. BHIL is a subsidiary of BHFS. BHIL provides underwriting services to mutual funds. BHFS and BHIL collectively operate as Beacon Hill.
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