Ameriprise Financial (NYSE:AMP) and LEG & GEN GRP P/S (OTCMKTS:LGGNY) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Earnings & Valuation

This table compares Ameriprise Financial and LEG & GEN GRP P/S’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ameriprise Financial $12.84 billion 1.46 $2.10 billion $14.94 9.27
LEG & GEN GRP P/S $52.17 billion 0.43 $2.44 billion N/A N/A

LEG & GEN GRP P/S has higher revenue and earnings than Ameriprise Financial.

Profitability

This table compares Ameriprise Financial and LEG & GEN GRP P/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ameriprise Financial 16.35% 38.65% 1.54%
LEG & GEN GRP P/S N/A N/A N/A

Dividends

Ameriprise Financial pays an annual dividend of $3.60 per share and has a dividend yield of 2.6%. LEG & GEN GRP P/S pays an annual dividend of $0.54 per share and has a dividend yield of 2.9%. Ameriprise Financial pays out 24.1% of its earnings in the form of a dividend. Ameriprise Financial has increased its dividend for 9 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for Ameriprise Financial and LEG & GEN GRP P/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ameriprise Financial 0 3 4 0 2.57
LEG & GEN GRP P/S 0 1 0 0 2.00

Ameriprise Financial presently has a consensus target price of $150.00, suggesting a potential upside of 8.27%. Given Ameriprise Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe Ameriprise Financial is more favorable than LEG & GEN GRP P/S.

Volatility and Risk

Ameriprise Financial has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500. Comparatively, LEG & GEN GRP P/S has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Institutional & Insider Ownership

85.0% of Ameriprise Financial shares are owned by institutional investors. Comparatively, 0.1% of LEG & GEN GRP P/S shares are owned by institutional investors. 1.9% of Ameriprise Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Ameriprise Financial beats LEG & GEN GRP P/S on 11 of the 15 factors compared between the two stocks.

About Ameriprise Financial

Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through Advice & Wealth Management, Asset Management, Annuities, and Protection segments. The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services primarily to retail clients through its advisors. The Asset Management segment offers investment management and advice, and investment products to retail, high net worth, and institutional clients through unaffiliated third party financial institutions and institutional sales force. This segment's 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 funds. The Annuities segment provides variable and fixed annuity products to individual clients through affiliated and unaffiliated advisors, and financial institutions. The Protection segment offers various products to address the protection and risk management needs of retail clients, including life, disability income, and property casualty insurance through advisors and affinity relationships. 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 LEG & GEN GRP P/S

Legal & General Group Plc provides various insurance products and services worldwide. It operates in Legal & General Retirement (LGR), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), Legal & General Insurance (LGI), and General Insurance (GI) segments. The LGR segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products for company pension schemes; and lifetime mortgages. The LGIM segment provides index fund management; active fixed income and liquidity management; solution and liability driven investment; active equity; corporate pension scheme solutions; and real estate funds. The LGC segment offers investment strategy and implementation, and direct investment and structuring services. The LGI segment protection products, such as health, disability, critical illness and accident; individual term assurance; savings and death benefits; and annuities. The GI segment provides household and accident, sickness, unemployment, and pet insurance products.The company is also involved in insurance agency and brokerage, unit trust, institutional fund management, distribution, mortgage finance, treasury, SPV, building project and modular housing development, general insurance, and open ended investment businesses. It also engages in the real estate investment and trading, fund general partner, fund trustee, long term, commercial lending, venture and development capital, contractual scheme, real estate agency, private equity, management, investor alternative investment fund, collective asset-management, reinsurance, and investment management activities, as well as provides investment advisory and property services. The company was founded in 1836 and is based in London, the United Kingdom.

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