Ameriprise Financial (NYSE:AMP – Get Free Report) is one of 1,744 public companies in the “Capital Markets” industry, but how does it compare to its peers? We will compare Ameriprise Financial to related businesses based on the strength of its valuation, analyst recommendations, risk, institutional ownership, dividends, profitability and earnings.
Dividends
Ameriprise Financial pays an annual dividend of $6.80 per share and has a dividend yield of 1.3%. Ameriprise Financial pays out 15.3% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.1% of their earnings in the form of a dividend. Ameriprise Financial has raised its dividend for 21 consecutive years.
Volatility & Risk
Ameriprise Financial has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Ameriprise Financial’s peers have a beta of 0.81, meaning that their average stock price is 19% less volatile than the S&P 500.
Insider & Institutional Ownership
83.9% of Ameriprise Financial shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 0.6% of Ameriprise Financial shares are held by insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings for Ameriprise Financial and its peers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ameriprise Financial | 2 | 5 | 4 | 1 | 2.33 |
| Ameriprise Financial Competitors | 5545 | 20106 | 22435 | 641 | 2.37 |
Ameriprise Financial currently has a consensus price target of $557.00, indicating a potential upside of 10.49%. As a group, “Capital Markets” companies have a potential upside of 25.49%. Given Ameriprise Financial’s peers stronger consensus rating and higher possible upside, analysts plainly believe Ameriprise Financial has less favorable growth aspects than its peers.
Profitability
This table compares Ameriprise Financial and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ameriprise Financial | 20.24% | 64.19% | 2.15% |
| Ameriprise Financial Competitors | 313.70% | 79.21% | 3.63% |
Earnings and Valuation
This table compares Ameriprise Financial and its peers top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Ameriprise Financial | $19.83 billion | $3.56 billion | 11.34 |
| Ameriprise Financial Competitors | $2.29 billion | $394.83 million | 17.09 |
Ameriprise Financial has higher revenue and earnings than its peers. Ameriprise Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Summary
Ameriprise Financial peers beat Ameriprise Financial on 9 of the 15 factors compared.
Ameriprise Financial Company Profile
Ameriprise Financial, Inc., together with its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates. The Asset Management segment offers investment management, advice, and products to retail, high net worth, and institutional clients through third-party financial institutions, advisor networks, direct retail, and its institutional sales force under the Columbia Threadneedle Investments brand name. This segment products 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 and infrastructure funds. The Retirement & Protection Solutions segment provides variable annuity products, as well as life and disability income insurance products to retail clients. 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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