Affiliated Managers Group (NYSE:AMG) and Janus Henderson Group (NYSE:JHG) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a summary of current ratings and price targets for Affiliated Managers Group and Janus Henderson Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Affiliated Managers Group 0 2 6 0 2.75
Janus Henderson Group 2 5 0 0 1.71

Affiliated Managers Group currently has a consensus target price of $177.88, suggesting a potential upside of 71.96%. Janus Henderson Group has a consensus target price of $33.07, suggesting a potential upside of 56.51%. Given Affiliated Managers Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Affiliated Managers Group is more favorable than Janus Henderson Group.

Dividends

Affiliated Managers Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.2%. Janus Henderson Group pays an annual dividend of $1.44 per share and has a dividend yield of 6.8%. Affiliated Managers Group pays out 8.2% of its earnings in the form of a dividend. Janus Henderson Group pays out 58.1% 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.

Insider and Institutional Ownership

92.2% of Affiliated Managers Group shares are held by institutional investors. Comparatively, 56.2% of Janus Henderson Group shares are held by institutional investors. 0.9% of Affiliated Managers Group shares are held by insiders. Comparatively, 2.1% of Janus Henderson Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Affiliated Managers Group and Janus Henderson Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Affiliated Managers Group $2.31 billion 2.36 $689.50 million $14.60 7.08
Janus Henderson Group $2.18 billion 1.92 $655.50 million $2.48 8.52

Affiliated Managers Group has higher revenue and earnings than Janus Henderson Group. Affiliated Managers Group is trading at a lower price-to-earnings ratio than Janus Henderson Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Affiliated Managers Group has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, Janus Henderson Group has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Profitability

This table compares Affiliated Managers Group and Janus Henderson Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Affiliated Managers Group 29.38% 19.37% 9.98%
Janus Henderson Group 37.59% 11.67% 8.11%

Summary

Affiliated Managers Group beats Janus Henderson Group on 12 of the 16 factors compared between the two stocks.

About Affiliated Managers Group

Affiliated Managers Group, Inc., through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. It provides advisory or subadvisory services to mutual funds. These funds are distributed to retail and institutional clients directly and through intermediaries, including independent investment advisors, retirement plan sponsors, broker-dealers, major fund marketplaces, and bank trust departments. The company also offers investment products in various investment styles in the institutional distribution channel, including small, small/mid, mid, and large capitalization value and growth equity, and emerging markets. In addition, it offers quantitative, alternative, and fixed income products, and manages assets for foundations and endowments, defined benefit, and defined contribution plans for corporations and municipalities. Affiliated Managers Group provides investment management or customized investment counseling and fiduciary services. The company was formed as a corporation under the laws of Delaware in 1993. Affiliated Managers Group is based in Prides Crossing, Massachusetts.

About Janus Henderson Group

Janus Henderson Group plc is an asset management holding entity. Through its subsidiaries, the firm provides services to institutional, retail clients, and high net worth clients. It manages separate client-focused equity and fixed income portfolios. The firm also manages equity, fixed income, and balanced mutual funds for its clients. It invests in public equity and fixed income markets, as well as invests in real estate and private equity. Janus Henderson Group plc was founded in 1934 and is based in London, United Kingdom with additional offices in Jersey, United Kingdom and Sydney, Australia.

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