Contrasting Deutsche Boerse (OTCMKTS:DBOEY) & Acadian Asset Management (NYSE:AAMI)

Acadian Asset Management (NYSE:AAMI) and Deutsche Boerse (OTCMKTS:DBOEY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares Acadian Asset Management and Deutsche Boerse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acadian Asset Management	15.17%	189.32%	21.26%
Deutsche Boerse	33.04%	20.33%	0.64%

Dividends

Acadian Asset Management pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Deutsche Boerse pays an annual dividend of $0.29 per share and has a dividend yield of 0.9%. Acadian Asset Management pays out 14.1% of its earnings in the form of a dividend. Deutsche Boerse pays out 21.3% 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.

Institutional & Insider Ownership

98.7% of Acadian Asset Management shares are held by institutional investors. 22.6% of Acadian Asset Management shares are held by 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.

Volatility & Risk

Acadian Asset Management has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Deutsche Boerse has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Valuation and Earnings

This table compares Acadian Asset Management and Deutsche Boerse”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acadian Asset Management	$563.70 million	5.73	$80.00 million	$2.83	32.17
Deutsche Boerse	$6.82 billion	8.95	$2.26 billion	$1.36	24.88

Deutsche Boerse has higher revenue and earnings than Acadian Asset Management. Deutsche Boerse is trading at a lower price-to-earnings ratio than Acadian Asset Management, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Acadian Asset Management and Deutsche Boerse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acadian Asset Management	0	4	1	0	2.20
Deutsche Boerse	1	2	3	0	2.33

Acadian Asset Management currently has a consensus price target of $94.00, suggesting a potential upside of 3.25%. Given Acadian Asset Management’s higher probable upside, research analysts plainly believe Acadian Asset Management is more favorable than Deutsche Boerse.

Summary

Acadian Asset Management beats Deutsche Boerse on 9 of the 16 factors compared between the two stocks.

About Acadian Asset Management

Acadian Asset Management Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.

About Deutsche Boerse

Deutsche Börse AG operates as an exchange organization in Europe, America, and the Asia-Pacific. The company operates through four segments: Data & Analytics; Trading & Clearing; Fund Services; and Securities Services. It engages in the trading of derivatives, electricity and gas products, emission rights, foreign exchange, and commodity products; operating EEX and 360T over the counter trading platform for financial instruments, such as foreign exchange, money market, and interest rate products; and operating as a central counterparty. The company also operates in the cash market through Xetra, Börse Frankfurt, and Tradegate trading venues; Qontigo, an integrated suite of front-to-back investment management solution; and a central counterparty for equities and bonds, as well as provides pre-ipo and listing services. In addition, it offers custody and settlement services for securities; investment fund services; connectivity services; and global securities funding and financing, and collateral and liquidity management, as well as secured money, market transaction, and repos and securities lending transaction services. Further, the company provides order routing, settlement, asset management, and custody; investment distribution and placement; infrastructure and post-trading; index, analytics, and risk; securities transactions settlement; securities custody and administration; and market data and analytics services. Additionally, it operates third clearing house Nodal Clear; and specialized software as a service platform for trading participants and digital business platform, as well as offers information technology solutions, including financial market, commodities market, and network connectivity solutions under the Deutsche Börse and 7 Market Technology brands. The company was founded in 1585 and is headquartered in Eschborn, Germany.