Affiliated Managers Group (NYSE:AMG) versus Sprott (NYSE:SII) Financial Comparison

Affiliated Managers Group (NYSE:AMG) and Sprott (NYSE:SII) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Valuation & Earnings

This table compares Affiliated Managers Group and Sprott”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Affiliated Managers Group	$2.07 billion	3.86	$716.60 million	$23.08	13.06
Sprott	$268.78 million	12.62	$67.35 million	$2.60	50.59

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Affiliated Managers Group	34.55%	18.45%	8.63%
Sprott	23.62%	19.47%	14.82%

Volatility and Risk

Affiliated Managers Group has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Sprott has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Dividends

Affiliated Managers Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Sprott pays an annual dividend of $1.60 per share and has a dividend yield of 1.2%. Affiliated Managers Group pays out 0.2% of its earnings in the form of a dividend. Sprott pays out 61.5% 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. Sprott has increased its dividend for 1 consecutive years. Sprott is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Affiliated Managers Group and Sprott, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Affiliated Managers Group	0	1	7	0	2.88
Sprott	0	1	2	0	2.67

Affiliated Managers Group currently has a consensus price target of $350.14, suggesting a potential upside of 16.15%. Sprott has a consensus price target of $132.00, suggesting a potential upside of 0.35%. Given Affiliated Managers Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Affiliated Managers Group is more favorable than Sprott.

Insider & Institutional Ownership

95.3% of Affiliated Managers Group shares are owned by institutional investors. Comparatively, 28.3% of Sprott shares are owned by institutional investors. 4.2% of Affiliated Managers Group shares are owned by insiders. Comparatively, 18.3% of Sprott shares are owned by 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.

Summary

Affiliated Managers Group beats Sprott on 10 of the 17 factors compared between the two stocks.

About Affiliated Managers Group

Affiliated Managers Group, Inc., through its affiliates, operates as an investment management company providing investment management services to mutual funds, institutional clients,retails and high net worth individuals in the United States. It provides advisory or sub-advisory services to mutual funds. These funds are distributed to retail, high net worth and institutional clients directly and through intermediaries, including independent investment advisors, retirement plan sponsors, broker-dealers, major fund marketplaces, and bank trust departments. The company also offers investment products in various investment styles in the institutional distribution channel, including small, small/mid, mid, and large capitalization value and growth equity, and emerging markets. In addition, it offers quantitative, alternative, and fixed income products, and manages assets for foundations and endowments, defined benefit, and defined contribution plans for corporations and municipalities. Affiliated Managers Group provides investment management or customized investment counseling and fiduciary services. Affiliated Managers Group, Inc. was formed in 1993 and is based in West Palm Beach, Florida with additional offices in Prides Crossing, Massachusetts; Stamford, Connecticut; London, United Kingdom; Dubai, United Arab Emirates; Sydney, Australia; Hong Kong; Tokyo, Japan, Zurich, Switzerland and Delaware.

About Sprott

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.