Contrasting Affiliated Managers Group (AMG) & Oaktree Capital Group (OAK)
Affiliated Managers Group (NYSE: AMG) and Oaktree Capital Group (NYSE:OAK) are both mid-cap financials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
This is a breakdown of recent ratings and price targets for Affiliated Managers Group and Oaktree Capital Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Affiliated Managers Group||0||2||5||0||2.71|
|Oaktree Capital Group||0||5||1||0||2.17|
Affiliated Managers Group presently has a consensus price target of $206.43, indicating a potential upside of 4.78%. Oaktree Capital Group has a consensus price target of $49.50, indicating a potential upside of 17.02%. Given Oaktree Capital Group’s higher probable upside, analysts clearly believe Oaktree Capital Group is more favorable than Affiliated Managers Group.
Earnings and Valuation
This table compares Affiliated Managers Group and Oaktree Capital Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Affiliated Managers Group||$2.19 billion||4.99||$472.80 million||$9.24||21.32|
|Oaktree Capital Group||$1.13 billion||5.87||$194.70 million||$4.35||9.72|
Affiliated Managers Group has higher revenue and earnings than Oaktree Capital Group. Oaktree Capital Group is trading at a lower price-to-earnings ratio than Affiliated Managers Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Affiliated Managers Group has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Oaktree Capital Group has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Insider and Institutional Ownership
95.8% of Affiliated Managers Group shares are held by institutional investors. Comparatively, 22.6% of Oaktree Capital Group shares are held by institutional investors. 1.4% of Affiliated Managers Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Affiliated Managers Group and Oaktree Capital Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Affiliated Managers Group||23.29%||17.63%||8.93%|
|Oaktree Capital Group||19.04%||18.88%||4.51%|
Affiliated Managers Group pays an annual dividend of $0.80 per share and has a dividend yield of 0.4%. Oaktree Capital Group pays an annual dividend of $2.24 per share and has a dividend yield of 5.3%. Affiliated Managers Group pays out 8.7% of its earnings in the form of a dividend. Oaktree Capital Group pays out 51.5% 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.
Affiliated Managers Group beats Oaktree Capital Group on 12 of the 16 factors compared between the two stocks.
About Affiliated Managers Group
Affiliated Managers Group, Inc. is an asset management company with equity investments in boutique investment management firms. The Company operates in three segments, which represent its principal distribution channels: Institutional, Mutual Fund and High Net Worth. The equity method investments in the Institutional distribution channel are made in relationships with public and private client entities, including foundations, endowments, sovereign wealth funds and retirement plans for corporations and municipalities. The equity method investments in the Mutual Fund distribution channel are made in advisory or sub-advisory relationships with active return-oriented mutual funds, Undertakings for Collective Investment in Transferable Securities and other retail products. The equity method investments in the High Net Worth distribution channel are made in relationships with high net worth and ultra-high net worth individuals, families, trusts, foundations, endowments and retirement plans.
About Oaktree Capital Group
Oaktree Capital Group, LLC (Oaktree) is an investment manager specializing in alternative investments. The Company operates through investment management segment, which consists of the investment management services that the Company provides to its clients. The Company manages investments in a range of strategies within approximately six asset classes, which include corporate debt, convertible securities, distressed debt, control investing, real estate and listed equities. The Funds managed by Oaktree include commingled funds, separate accounts and collateralized loan obligation vehicles (CLOs). The commingled funds include open-end and closed-end limited partnerships in which it makes an investment and for which it serves as the general partner. CLOs are structured finance vehicles in which the Company typically makes an investment and for which it serves as collateral manager. Its clientele includes the United States pension plans and corporations and/or their pension funds.
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