UBS AG (NYSE: UBS) and AMERIPRISE FINANCIAL SERVICES, INC. (NYSE:AMP) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

31.4% of UBS AG shares are held by institutional investors. Comparatively, 79.4% of AMERIPRISE FINANCIAL SERVICES, INC. shares are held by institutional investors. 1.0% of UBS AG shares are held by insiders. Comparatively, 1.5% of AMERIPRISE FINANCIAL SERVICES, INC. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for UBS AG and AMERIPRISE FINANCIAL SERVICES, INC., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UBS AG 0 3 6 0 2.67
AMERIPRISE FINANCIAL SERVICES, INC. 1 4 4 0 2.33

AMERIPRISE FINANCIAL SERVICES, INC. has a consensus price target of $145.85, indicating a potential upside of 3.08%. Given AMERIPRISE FINANCIAL SERVICES, INC.’s higher possible upside, analysts plainly believe AMERIPRISE FINANCIAL SERVICES, INC. is more favorable than UBS AG.

Profitability

This table compares UBS AG and AMERIPRISE FINANCIAL SERVICES, INC.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UBS AG 11.09% 7.80% 0.46%
AMERIPRISE FINANCIAL SERVICES, INC. 11.81% 26.54% 1.20%

Earnings & Valuation

This table compares UBS AG and AMERIPRISE FINANCIAL SERVICES, INC.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
UBS AG $30.32 billion 2.07 $3.94 billion $1.06 15.93
AMERIPRISE FINANCIAL SERVICES, INC. $12.00 billion 1.77 $2.90 billion $8.78 16.12

UBS AG has higher revenue and earnings than AMERIPRISE FINANCIAL SERVICES, INC.. UBS AG is trading at a lower price-to-earnings ratio than AMERIPRISE FINANCIAL SERVICES, INC., indicating that it is currently the more affordable of the two stocks.

Dividends

UBS AG pays an annual dividend of $0.60 per share and has a dividend yield of 3.6%. AMERIPRISE FINANCIAL SERVICES, INC. pays an annual dividend of $3.32 per share and has a dividend yield of 2.3%. UBS AG pays out 56.6% of its earnings in the form of a dividend. AMERIPRISE FINANCIAL SERVICES, INC. pays out 37.8% 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. UBS AG has increased its dividend for 7 consecutive years and AMERIPRISE FINANCIAL SERVICES, INC. has increased its dividend for 4 consecutive years. UBS AG is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

UBS AG has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, AMERIPRISE FINANCIAL SERVICES, INC. has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Summary

AMERIPRISE FINANCIAL SERVICES, INC. beats UBS AG on 9 of the 17 factors compared between the two stocks.

About UBS AG

UBS Group AG is a holding company and conducts its operations through UBS AG and its subsidiaries. The Company comprises Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. Wealth Management division provides advice and tailored financial services to wealthy private clients around the world, except those served by Wealth Management Americas. Wealth Management Americas division is a wealth manager in the Americas in terms of financial advisor productivity and invested assets by financial advisor. Personal & Corporate Banking division provides financial products and services to private, corporate and institutional clients in Switzerland. Asset Management division provides investment management products and services, platform solutions and advisory support. Investment Bank division provides investment advice, financial solutions and capital markets access.

About AMERIPRISE FINANCIAL SERVICES, INC.

Ameriprise Financial, Inc. is a financial services company that offers financial solutions to individual and institutional clients. The Company operates in five segments: Advice & Wealth Management; Asset Management; Annuities; Protection, and Corporate & Other. The Company uses Ameriprise Financial as its enterprise brand, as well as the name of its advisor network and certain of its retail products and services. The retail products and services that use the Ameriprise Financial brand include those that it provides through its advisors (financial planning, investment advisory accounts and retail brokerage services) and products and services that the Company markets directly to consumers or through affinity groups (personal auto and home insurance). The Company uses its RiverSource brand for its annuity and protection products issued by the RiverSource Life companies, including its life and disability income insurance products.

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