Analyzing Focus Financial Partners (NASDAQ:FOCS) and Affiliated Managers Group (AMG)

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

Dividends

Affiliated Managers Group pays an annual dividend of $1.28 per share and has a dividend yield of 1.1%. Focus Financial Partners does not pay a dividend. Affiliated Managers Group pays out 8.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for Focus Financial Partners and Affiliated Managers Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Focus Financial Partners 0 4 2 0 2.33
Affiliated Managers Group 0 4 3 0 2.43

Focus Financial Partners presently has a consensus price target of $43.00, suggesting a potential upside of 16.85%. Affiliated Managers Group has a consensus price target of $132.12, suggesting a potential upside of 16.27%. Given Focus Financial Partners’ higher probable upside, analysts plainly believe Focus Financial Partners is more favorable than Affiliated Managers Group.

Institutional & Insider Ownership

75.5% of Focus Financial Partners shares are held by institutional investors. Comparatively, 98.2% of Affiliated Managers Group shares are held by institutional investors. 0.9% of Affiliated Managers Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Focus Financial Partners -4.34% 69.46% 2.74%
Affiliated Managers Group 10.24% 18.11% 9.23%

Earnings and Valuation

This table compares Focus Financial Partners and Affiliated Managers Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Focus Financial Partners $910.88 million 2.80 -$590,000.00 $0.99 37.17
Affiliated Managers Group $2.38 billion 2.45 $243.60 million $14.50 7.84

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

Summary

Affiliated Managers Group beats Focus Financial Partners on 10 of the 15 factors compared between the two stocks.

About Focus Financial Partners

Focus Financial Partners Inc. provides wealth management services to primarily high net worth individuals and families. The company's wealth management services include investment advice, financial and tax planning, consulting, tax return preparation, family office services, and other services. It also offers recordkeeping and administration services. The company was founded in 2006 and is headquartered in New York, New York.

About Affiliated Managers Group

Affiliated Managers Group, Inc., through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. It provides advisory or subadvisory services to mutual funds. These funds are distributed to retail 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. The company was formed as a corporation under the laws of Delaware in 1993. Affiliated Managers Group is based in Prides Crossing, Massachusetts.

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