Value Line (NASDAQ:VALU) and Affiliated Managers Group (NYSE:AMG) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Volatility & Risk

Value Line has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Affiliated Managers Group has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Institutional and Insider Ownership

7.9% of Value Line shares are held by institutional investors. Comparatively, 92.2% of Affiliated Managers Group shares are held by institutional investors. 0.0% of Value Line shares are held by insiders. Comparatively, 0.9% of Affiliated Managers Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Value Line and Affiliated Managers Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Value Line 0 0 0 0 N/A
Affiliated Managers Group 0 2 6 0 2.75

Affiliated Managers Group has a consensus price target of $177.88, indicating a potential upside of 72.63%. Given Affiliated Managers Group’s higher possible upside, analysts plainly believe Affiliated Managers Group is more favorable than Value Line.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Value Line $35.87 million 7.13 $14.73 million N/A N/A
Affiliated Managers Group $2.31 billion 2.35 $689.50 million $14.60 7.06

Affiliated Managers Group has higher revenue and earnings than Value Line.

Dividends

Value Line pays an annual dividend of $0.76 per share and has a dividend yield of 2.9%. Affiliated Managers Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.2%. Affiliated Managers Group pays out 8.2% of its earnings in the form of a dividend. Value Line has increased its dividend for 3 consecutive years. Value Line is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Value Line 43.50% 22.52% 11.16%
Affiliated Managers Group 29.38% 19.37% 9.98%

Summary

Value Line beats Affiliated Managers Group on 8 of the 15 factors compared between the two stocks.

About Value Line

Value Line, Inc., together with its subsidiaries, produces and sells investment periodicals and related publications primarily in the United States. Its investment periodicals and related publications cover a range of investments, including stocks, mutual funds, exchange traded funds (ETFs), options, and convertible securities. The company offers research services, such as The Value Line Investment Survey, The Value Line Investment Survey – Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus, which provide statistical and text coverage of various investment securities, with an emphasis placed on its proprietary research, analysis, and statistical ranks. It also provides niche newsletters comprising Value Line Select, Value Line Select: Dividend Income & Growth, Value Line Select: ETFs, and The Value Line Special Situations Service that offer information on a less comprehensive basis for securities that are of particular interest to subscribers; digital versions of its products through its Website, valueline.com; and investment analysis software, such as The Value Line Investment Analyzer, which includes data sorting and filtering tools. In addition, the company offers current and historical financial databases comprising DataFile, estimates and projections, convertibles, and mutual funds through online; and copyright data products, which include unit investment trusts, variable annuities, managed accounts, and EFTs. Further, it places advertising on behalf of the company's publications; and provides subscription fulfillment and subscriber relation services. The company serves individual and professional investors, as well as institutions, including municipal and university libraries, and investment firms. Value Line, Inc. was founded in 1931 and is headquartered in New York, New York. Value Line, Inc. is a subsidiary of Arnold Bernhard & Co, Inc.

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.

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