Affiliated Managers Group (NYSE:AMG – Get Free Report) and Royalty Management (NASDAQ:RMCO – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.
Volatility and Risk
Affiliated Managers Group has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Royalty Management has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500.
Institutional & Insider Ownership
95.3% of Affiliated Managers Group shares are owned by institutional investors. Comparatively, 67.2% of Royalty Management shares are owned by institutional investors. 2.9% of Affiliated Managers Group shares are owned by insiders. Comparatively, 0.3% of Royalty Management shares are owned by 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.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Affiliated Managers Group | 35.55% | 20.17% | 9.19% |
| Royalty Management | -23.33% | -11.50% | -7.70% |
Valuation & Earnings
This table compares Affiliated Managers Group and Royalty Management”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 | 3.98 | $716.60 million | $24.72 | 12.64 |
| Royalty Management | $4.95 million | 7.81 | -$730,000.00 | ($0.08) | -31.88 |
Affiliated Managers Group has higher revenue and earnings than Royalty Management. Royalty Management is trading at a lower price-to-earnings ratio than Affiliated Managers Group, indicating that it is currently the more affordable of the two stocks.
Dividends
Affiliated Managers Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Royalty Management pays an annual dividend of $0.01 per share and has a dividend yield of 0.4%. Affiliated Managers Group pays out 0.2% of its earnings in the form of a dividend. Royalty Management pays out -12.5% 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. Royalty Management is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Affiliated Managers Group and Royalty Management, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Affiliated Managers Group | 0 | 1 | 7 | 0 | 2.88 |
| Royalty Management | 1 | 1 | 1 | 0 | 2.00 |
Affiliated Managers Group presently has a consensus price target of $362.29, suggesting a potential upside of 15.92%. Given Affiliated Managers Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Affiliated Managers Group is more favorable than Royalty Management.
Summary
Affiliated Managers Group beats Royalty Management on 13 of the 16 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 Royalty Management
Royalty Management Holding Corporation provides environmental consulting and services in the United States. It is also involved in investing or purchasing assets, such as real estate and mining permits, patents, intellectual property, and emerging technologies. The company was incorporated in 2021 and is based in Fishers, Indiana.
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