Pzena Investment Management (NYSE: PZN) and AllianceBernstein Holding L.P. (NYSE:AB) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.
Insider & Institutional Ownership
17.4% of Pzena Investment Management shares are held by institutional investors. Comparatively, 19.4% of AllianceBernstein Holding L.P. shares are held by institutional investors. 57.4% of Pzena Investment Management shares are held by company insiders. Comparatively, 2.7% of AllianceBernstein Holding L.P. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Pzena Investment Management and AllianceBernstein Holding L.P.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pzena Investment Management||$122.22 million||1.30||$56.40 million||$0.66||13.95|
|AllianceBernstein Holding L.P.||$232.17 million||9.42||$203.84 million||$2.18||10.73|
AllianceBernstein Holding L.P. has higher revenue and earnings than Pzena Investment Management. AllianceBernstein Holding L.P. is trading at a lower price-to-earnings ratio than Pzena Investment Management, indicating that it is currently the more affordable of the two stocks.
This table compares Pzena Investment Management and AllianceBernstein Holding L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pzena Investment Management||14.82%||12.93%||6.38%|
|AllianceBernstein Holding L.P.||6.74%||13.28%||13.28%|
This is a breakdown of current recommendations for Pzena Investment Management and AllianceBernstein Holding L.P., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pzena Investment Management||0||1||0||0||2.00|
|AllianceBernstein Holding L.P.||0||2||3||0||2.60|
AllianceBernstein Holding L.P. has a consensus price target of $26.33, suggesting a potential upside of 12.54%. Given AllianceBernstein Holding L.P.’s stronger consensus rating and higher possible upside, analysts clearly believe AllianceBernstein Holding L.P. is more favorable than Pzena Investment Management.
Pzena Investment Management pays an annual dividend of $0.12 per share and has a dividend yield of 1.3%. AllianceBernstein Holding L.P. pays an annual dividend of $1.96 per share and has a dividend yield of 8.4%. Pzena Investment Management pays out 18.2% of its earnings in the form of a dividend. AllianceBernstein Holding L.P. pays out 89.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Pzena Investment Management has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, AllianceBernstein Holding L.P. has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.
AllianceBernstein Holding L.P. beats Pzena Investment Management on 11 of the 16 factors compared between the two stocks.
About Pzena Investment Management
Pzena Investment Management, Inc. is a holding company. The Company is the sole managing member of Pzena Investment Management, LLC. Pzena Investment Management, LLC is an investment management company. The Company also serves as the general partner of Pzena Investment Management, LP. The Company offers institutional investment products to public and corporate pension funds, endowments, foundations and certain commingled vehicles geared toward institutional investors. The Company also offers access to certain of its global and non-United States strategies through private placement vehicles and collective investment trusts. Pzena Investment Management, LLC is its operating company. Pzena Investment Management, LLC consists of Class A and Class B membership units.
About AllianceBernstein Holding L.P.
AllianceBernstein Holding L.P. is engaged in providing research, investment management and related services to a range of clients through its three buy-side distribution channels: Institutions, Retail and Private Wealth Management, and its sell-side business, Bernstein Research Services. The Company offers a range of investment services, including equity strategies, with global and regional portfolios across capitalization ranges and investment strategies, including value, growth and equities; traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; passive management, including index and enhanced index strategies; alternative investments, including hedge funds, fund of funds and private equity, and multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds. The Company’s services span various investment disciplines, including market capitalization, term and geographic locations.
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