Head-To-Head Comparison: Federated Investors (FII) versus Artisan Partners Asset Management (APAM)
Federated Investors (NYSE: FII) and Artisan Partners Asset Management (NYSE:APAM) are both mid-cap investment management companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Risk & Volatility
Federated Investors has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, Artisan Partners Asset Management has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.
This table compares Federated Investors and Artisan Partners Asset Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Artisan Partners Asset Management||12.58%||95.09%||12.21%|
Institutional and Insider Ownership
83.8% of Federated Investors shares are held by institutional investors. Comparatively, 64.6% of Artisan Partners Asset Management shares are held by institutional investors. 7.1% of Federated Investors shares are held by company insiders. Comparatively, 30.0% of Artisan Partners Asset Management shares are held by company 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.
Earnings & Valuation
This table compares Federated Investors and Artisan Partners Asset Management’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Federated Investors||$1.14 billion||2.73||$208.91 million||$2.12||14.58|
|Artisan Partners Asset Management||$720.90 million||3.84||$73.02 million||$1.86||19.70|
Federated Investors has higher revenue and earnings than Artisan Partners Asset Management. Federated Investors is trading at a lower price-to-earnings ratio than Artisan Partners Asset Management, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for Federated Investors and Artisan Partners Asset Management, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Artisan Partners Asset Management||1||3||2||0||2.17|
Federated Investors presently has a consensus price target of $28.00, indicating a potential downside of 9.44%. Artisan Partners Asset Management has a consensus price target of $30.92, indicating a potential downside of 15.64%. Given Federated Investors’ higher probable upside, equities research analysts plainly believe Federated Investors is more favorable than Artisan Partners Asset Management.
Federated Investors pays an annual dividend of $1.00 per share and has a dividend yield of 3.2%. Artisan Partners Asset Management pays an annual dividend of $2.40 per share and has a dividend yield of 6.5%. Federated Investors pays out 47.2% of its earnings in the form of a dividend. Artisan Partners Asset Management pays out 129.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
About Federated Investors
Federated Investors, Inc. (Federated) is a provider of investment management products and related financial services. Federated operates through investment management business segment. It is engaged in sponsoring, marketing and providing investment-related services to various investment products, including mutual funds and Separate Accounts, which include separately managed accounts, institutional accounts, sub-advised funds and other managed products. It operates in one segment, the investment management business. As of December 31, 2016, Federated provided investment advisory services to 124 sponsored investment companies and other funds (Federated Funds). It markets these funds to banks, brokers and dealers and other financial intermediaries using them to meet the needs of their customers and clients, including retail investors, corporations and retirement plans. The Company offers a range of products and strategies, including money market, equity and fixed-income investments.
About Artisan Partners Asset Management
Artisan Partners Asset Management Inc. is an investment management company. The Company provides a range of the United States, non-United States and global investment strategies, each of which is managed by one of its investment teams. The Company provides investment management services to separate accounts, mutual funds and other pooled investment vehicles. The Company offers its investment management services primarily to institutions and through intermediaries that operate with institutional-like decision-making processes and have long-term investment horizons. The Company provides clients with multiple equity investment strategies spanning market capitalization segments and investing styles in both the United States and non-United States markets. The Company also offers one fixed income strategy, the Artisan High Income strategy. Each strategy is managed by one of the investment teams.
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