AllianceBernstein (NYSE:AB – Get Free Report) and ONEX (OTCMKTS:ONEXF – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current ratings and price targets for AllianceBernstein and ONEX, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AllianceBernstein | 0 | 4 | 2 | 0 | 2.33 |
| ONEX | 0 | 2 | 3 | 0 | 2.60 |
AllianceBernstein presently has a consensus target price of $37.88, suggesting a potential upside of 8.82%. Given AllianceBernstein’s higher probable upside, analysts clearly believe AllianceBernstein is more favorable than ONEX.
Earnings and Valuation
This table compares AllianceBernstein and ONEX”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AllianceBernstein | $4.53 billion | 0.71 | $299.84 million | $3.38 | 10.30 |
| ONEX | $899.00 million | 6.01 | $617.00 million | $6.68 | 10.61 |
ONEX has lower revenue, but higher earnings than AllianceBernstein. AllianceBernstein is trading at a lower price-to-earnings ratio than ONEX, indicating that it is currently the more affordable of the two stocks.
Dividends
AllianceBernstein pays an annual dividend of $3.28 per share and has a dividend yield of 9.4%. ONEX pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. AllianceBernstein pays out 97.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ONEX pays out 4.2% of its earnings in the form of a dividend.
Risk and Volatility
AllianceBernstein has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, ONEX has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Profitability
This table compares AllianceBernstein and ONEX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AllianceBernstein | 6.60% | 25.94% | 25.92% |
| ONEX | 63.83% | 5.24% | 4.21% |
Insider & Institutional Ownership
19.3% of AllianceBernstein shares are held by institutional investors. Comparatively, 0.7% of ONEX shares are held by institutional investors. 2.7% of AllianceBernstein shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
ONEX beats AllianceBernstein on 9 of the 16 factors compared between the two stocks.
About AllianceBernstein
AllianceBernstein Holding L.P. is a publicly owned investment manager. The firm is a related adviser The firm manages separate client focused portfolios for its clients. The firm primarily invests in common and preferred stocks, warrants and convertible securities, government and corporate fxed-income securities, commodities, currencies, real estate-related assets and infation-protected securities. The firm employs quantitative analysis along with long-term purchases, short-term purchases, trading, short sales, margin transactions, option strategies including writing covered options, uncovered options and spread strategies to make its investments. The firm obtains external research to complement its in-house research. The firm was formerly known as Alliance Capital Management Holding LP. AllianceBernstein Holding L.P. was founded in 1967 and is based in Nashville,Tennessee.
About ONEX
Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; Boston, Massachusetts and London, United Kingdom.
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