Reviewing Noah (NOAH) & Affiliated Managers Group (AMG)

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Noah $362.03 million 6.52 $92.73 million $1.80 23.20
Affiliated Managers Group $2.31 billion 4.32 $689.50 million $12.07 14.84

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Noah and Affiliated Managers Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noah 0 0 0 0 N/A
Affiliated Managers Group 0 3 4 0 2.57

Affiliated Managers Group has a consensus price target of $224.00, indicating a potential upside of 25.06%. Given Affiliated Managers Group’s higher possible upside, analysts plainly believe Affiliated Managers Group is more favorable than Noah.

Dividends

Affiliated Managers Group pays an annual dividend of $0.80 per share and has a dividend yield of 0.4%. Noah does not pay a dividend. Affiliated Managers Group pays out 6.6% of its earnings in the form of a dividend.

Insider and Institutional Ownership

48.0% of Noah shares are held by institutional investors. Comparatively, 95.7% of Affiliated Managers Group shares are held by institutional investors. 1.4% of Affiliated Managers Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Noah 29.74% 18.11% 11.84%
Affiliated Managers Group 29.92% 18.61% 9.52%

Risk & Volatility

Noah has a beta of 2.54, suggesting that its share price is 154% more volatile than the S&P 500. Comparatively, Affiliated Managers Group has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Summary

Affiliated Managers Group beats Noah on 10 of the 15 factors compared between the two stocks.

About Noah

Noah Holdings Limited is a wealth management service provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China. The Company operates through three segments: wealth management, asset management and Internet finance. It also provides Internet finance services to clients in China. It provides direct access to China’s high net worth population. With approximately 1,100 relationship managers in over 130 branch offices, its coverage network includes China’s regions where high net worth population is concentrated, including the Yangtze River Delta, the Pearl River Delta, the Bohai Rim and other regions. Its product offerings consist primarily of over-the-counter (OTC) wealth management and OTC asset management products, mutual fund products and asset management plans originated in China and designed to cater to the needs of China’s high net worth population.

About Affiliated Managers Group

Affiliated Managers Group, Inc. is an asset management company with equity investments in boutique investment management firms. The Company operates in three segments, which represent its principal distribution channels: Institutional, Mutual Fund and High Net Worth. The equity method investments in the Institutional distribution channel are made in relationships with public and private client entities, including foundations, endowments, sovereign wealth funds and retirement plans for corporations and municipalities. The equity method investments in the Mutual Fund distribution channel are made in advisory or sub-advisory relationships with active return-oriented mutual funds, Undertakings for Collective Investment in Transferable Securities and other retail products. The equity method investments in the High Net Worth distribution channel are made in relationships with high net worth and ultra-high net worth individuals, families, trusts, foundations, endowments and retirement plans.

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