Head-To-Head Review: Fifth Street Asset Management (OTCMKTS:FSAM) & Ameriprise Financial (OTCMKTS:AMP)

Fifth Street Asset Management (OTCMKTS:FSAM) and Ameriprise Financial (NYSE:AMP) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Insider and Institutional Ownership

80.4% of Ameriprise Financial shares are held by institutional investors. 85.4% of Fifth Street Asset Management shares are held by insiders. Comparatively, 1.9% of Ameriprise Financial 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 breakdown of recent ratings and recommmendations for Fifth Street Asset Management and Ameriprise Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fifth Street Asset Management 0 0 0 0 N/A
Ameriprise Financial 0 1 8 0 2.89

Ameriprise Financial has a consensus price target of $176.43, indicating a potential upside of 10.28%. Given Ameriprise Financial’s higher possible upside, analysts plainly believe Ameriprise Financial is more favorable than Fifth Street Asset Management.

Valuation and Earnings

This table compares Fifth Street Asset Management and Ameriprise Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fifth Street Asset Management $82.55 million 1.01 -$1.53 million N/A N/A
Ameriprise Financial $12.84 billion 1.63 $2.10 billion $14.94 10.71

Ameriprise Financial has higher revenue and earnings than Fifth Street Asset Management.

Dividends

Fifth Street Asset Management pays an annual dividend of $0.50 per share and has a dividend yield of 30.7%. Ameriprise Financial pays an annual dividend of $3.88 per share and has a dividend yield of 2.4%. Ameriprise Financial pays out 26.0% of its earnings in the form of a dividend.

Volatility and Risk

Fifth Street Asset Management has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Ameriprise Financial has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500.

Profitability

This table compares Fifth Street Asset Management and Ameriprise Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fifth Street Asset Management N/A N/A N/A
Ameriprise Financial 15.31% 37.50% 1.52%

Summary

Ameriprise Financial beats Fifth Street Asset Management on 10 of the 13 factors compared between the two stocks.

About Fifth Street Asset Management

Fifth Street Asset Management Inc. is an asset management holding company. The firm provides asset management services through its subsidiaries. Fifth Street Asset Management Inc. was founded in 1998 and is headquartered in Greenwich, Connecticut.

About Ameriprise Financial

Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through five segments: Advice & Wealth Management, Asset Management, Annuities, Protection, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services primarily to retail clients through its advisors. The Asset Management segment offers investment management and advice, and investment products to retail, high net worth, and institutional clients through unaffiliated third party financial institutions and institutional sales force. Its products also include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property funds. The Annuities segment provides variable and fixed annuity products to individual clients through affiliated and unaffiliated advisors, and financial institutions. The Protection segment offers various products to address the protection and risk management needs of retail clients, including life, disability income, and property casualty insurance through advisors and affinity relationships. The Corporate & Other segment consist of long term care business, net investment income or loss on corporate level assets. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.

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