Head-To-Head Analysis: AllianceBernstein Holding L.P. (AB) versus Federated Investors (FII)
AllianceBernstein Holding L.P. (NYSE: AB) and Federated Investors (NYSE:FII) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
This is a breakdown of recent ratings for AllianceBernstein Holding L.P. and Federated Investors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|AllianceBernstein Holding L.P.||0||1||4||0||2.80|
AllianceBernstein Holding L.P. presently has a consensus price target of $27.50, suggesting a potential upside of 6.38%. Federated Investors has a consensus price target of $27.43, suggesting a potential downside of 11.72%. Given AllianceBernstein Holding L.P.’s stronger consensus rating and higher probable upside, research analysts clearly believe AllianceBernstein Holding L.P. is more favorable than Federated Investors.
Risk & Volatility
AllianceBernstein Holding L.P. has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Federated Investors has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
Institutional and Insider Ownership
19.4% of AllianceBernstein Holding L.P. shares are held by institutional investors. Comparatively, 83.3% of Federated Investors shares are held by institutional investors. 2.7% of AllianceBernstein Holding L.P. shares are held by insiders. Comparatively, 7.1% of Federated Investors 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.
AllianceBernstein Holding L.P. pays an annual dividend of $1.96 per share and has a dividend yield of 7.6%. Federated Investors pays an annual dividend of $1.00 per share and has a dividend yield of 3.2%. AllianceBernstein Holding L.P. pays out 92.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federated Investors pays out 47.6% of its earnings in the form of a dividend.
This table compares AllianceBernstein Holding L.P. and Federated Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|AllianceBernstein Holding L.P.||6.38%||13.72%||13.72%|
Valuation & Earnings
This table compares AllianceBernstein Holding L.P. and Federated Investors’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AllianceBernstein Holding L.P.||$232.17 million||10.41||$198.23 million||$2.12||12.19|
|Federated Investors||$1.13 billion||2.68||$345.66 million||$2.10||14.80|
Federated Investors has higher revenue and earnings than AllianceBernstein Holding L.P.. AllianceBernstein Holding L.P. is trading at a lower price-to-earnings ratio than Federated Investors, indicating that it is currently the more affordable of the two stocks.
Federated Investors beats AllianceBernstein Holding L.P. on 9 of the 16 factors compared between the two stocks.
AllianceBernstein Holding L.P. Company Profile
AllianceBernstein Holding L.P. is engaged in providing research, investment management and related services to a range of clients through its three buy-side distribution channels: Institutions, Retail and Private Wealth Management, and its sell-side business, Bernstein Research Services. The Company offers a range of investment services, including equity strategies, with global and regional portfolios across capitalization ranges and investment strategies, including value, growth and equities; traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; passive management, including index and enhanced index strategies; alternative investments, including hedge funds, fund of funds and private equity, and multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds. The Company’s services span various investment disciplines, including market capitalization, term and geographic locations.
Federated Investors Company Profile
Federated Investors, Inc. (Federated) is a provider of investment management products and related financial services. Federated operates through investment management business segment. It is engaged in sponsoring, marketing and providing investment-related services to various investment products, including mutual funds and Separate Accounts, which include separately managed accounts, institutional accounts, sub-advised funds and other managed products. It operates in one segment, the investment management business. As of December 31, 2016, Federated provided investment advisory services to 124 sponsored investment companies and other funds (Federated Funds). It markets these funds to banks, brokers and dealers and other financial intermediaries using them to meet the needs of their customers and clients, including retail investors, corporations and retirement plans. The Company offers a range of products and strategies, including money market, equity and fixed-income investments.
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