Reviewing Acadian Asset Management (NYSE:AAMI) and Ponce Financial Group (NASDAQ:PDLB)

Ponce Financial Group (NASDAQ:PDLB) and Acadian Asset Management (NYSE:AAMI) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Ponce Financial Group and Acadian Asset Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ponce Financial Group	14.72%	9.68%	0.92%
Acadian Asset Management	14.19%	165.86%	16.94%

Valuation and Earnings

This table compares Ponce Financial Group and Acadian Asset Management”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ponce Financial Group	$194.94 million	2.04	$28.70 million	$1.19	13.93
Acadian Asset Management	$563.70 million	3.47	$80.00 million	$2.21	24.76

Acadian Asset Management has higher revenue and earnings than Ponce Financial Group. Ponce Financial Group is trading at a lower price-to-earnings ratio than Acadian Asset Management, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Ponce Financial Group has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Acadian Asset Management has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Ponce Financial Group and Acadian Asset Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ponce Financial Group	0	1	1	1	3.00
Acadian Asset Management	0	4	1	0	2.20

Acadian Asset Management has a consensus target price of $52.00, indicating a potential downside of 4.99%. Given Acadian Asset Management’s higher probable upside, analysts plainly believe Acadian Asset Management is more favorable than Ponce Financial Group.

Insider and Institutional Ownership

64.4% of Ponce Financial Group shares are owned by institutional investors. Comparatively, 98.7% of Acadian Asset Management shares are owned by institutional investors. 6.7% of Ponce Financial Group shares are owned by insiders. Comparatively, 26.0% of Acadian Asset Management shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Acadian Asset Management beats Ponce Financial Group on 11 of the 14 factors compared between the two stocks.

About Ponce Financial Group

Ponce Financial Group, Inc. operates as the bank holding company for Ponce Bank that provides various banking products and services. It offers various deposit products, including demand accounts, NOW/IOLA, money market, reciprocal deposits, savings accounts, and certificates of deposit to individuals, business entities, and non-profit organizations, as well as individual retirement accounts. The company also provides real estate-secured loans, which includes one-to-four family investor-owned and owner-occupied residential; multifamily residential; nonresidential property; construction and land; commercial and industrial; and business and consumer loans, as well as lines of credit. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or owned enterprises, as well as corporate securities, mortgage-backed securities, and Federal Home Loan Bank stock. Ponce Financial Group, Inc. was founded in 1960 and is headquartered in Bronx, New York.

About Acadian Asset Management

Acadian Asset Management Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.