Medley Management (NYSE: MDLY) and AllianceBernstein Holding L.P. (NYSE:AB) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Medley Management and AllianceBernstein Holding L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medley Management 2.68% -43.71% 17.11%
AllianceBernstein Holding L.P. 6.74% 13.28% 13.28%

Analyst Recommendations

This is a breakdown of current ratings for Medley Management and AllianceBernstein Holding L.P., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medley Management 0 3 0 0 2.00
AllianceBernstein Holding L.P. 0 2 3 0 2.60

Medley Management currently has a consensus target price of $9.75, indicating a potential upside of 54.76%. AllianceBernstein Holding L.P. has a consensus target price of $26.33, indicating a potential upside of 9.27%. Given Medley Management’s higher possible upside, equities analysts clearly believe Medley Management is more favorable than AllianceBernstein Holding L.P..

Dividends

Medley Management pays an annual dividend of $0.80 per share and has a dividend yield of 12.7%. AllianceBernstein Holding L.P. pays an annual dividend of $1.96 per share and has a dividend yield of 8.1%. Medley Management pays out 421.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AllianceBernstein Holding L.P. pays out 89.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Medley Management has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, AllianceBernstein Holding L.P. has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.

Valuation and Earnings

This table compares Medley Management and AllianceBernstein Holding L.P.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Medley Management $67.57 million 0.50 $27.69 million $0.19 33.16
AllianceBernstein Holding L.P. $232.17 million 9.71 $203.84 million $2.18 11.06

AllianceBernstein Holding L.P. has higher revenue and earnings than Medley Management. AllianceBernstein Holding L.P. is trading at a lower price-to-earnings ratio than Medley Management, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

65.6% of Medley Management shares are owned by institutional investors. Comparatively, 19.4% of AllianceBernstein Holding L.P. shares are owned by institutional investors. 5.1% of Medley Management shares are owned by insiders. Comparatively, 2.7% of AllianceBernstein Holding L.P. shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

AllianceBernstein Holding L.P. beats Medley Management on 10 of the 16 factors compared between the two stocks.

About Medley Management

Medley Management Inc. is an asset management firm offering yield solutions to retail and institutional investors. The Company operates in the investment management segment. It is focused on credit-related investment strategies, primarily originating senior secured loans to private middle market companies in the United States. The Company generally holds these loans to maturity. Its national direct origination franchise provides capital to the middle market in the United States. The Company has over $4.8 billion of assets under management (AUM) in approximately two business development companies (BDCs), Medley Capital Corporation (MCC) and Sierra Income Corporation (SIC), as well as private investment vehicles. It has over $5 billion of AUM. The Company provides capital to over 300 companies across approximately 35 industries in North America. The Company’s long-dated private funds include MOF I, MOF II and MOF III. Its private funds are managed through partnership structures

About AllianceBernstein Holding L.P.

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.

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