Comparing Hamilton Lane (HLNE) and Ameriprise Financial (AMP)

Hamilton Lane (NASDAQ:HLNE) and Ameriprise Financial (NYSE:AMP) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Hamilton Lane and Ameriprise Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hamilton Lane 0 1 2 0 2.67
Ameriprise Financial 0 1 7 0 2.88

Hamilton Lane currently has a consensus price target of $47.00, indicating a potential downside of 7.66%. Ameriprise Financial has a consensus price target of $171.50, indicating a potential upside of 15.57%. Given Ameriprise Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Ameriprise Financial is more favorable than Hamilton Lane.

Volatility and Risk

Hamilton Lane has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Ameriprise Financial has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

Institutional & Insider Ownership

45.5% of Hamilton Lane shares are held by institutional investors. Comparatively, 85.7% of Ameriprise Financial shares are held by institutional investors. 53.7% of Hamilton Lane shares are held by company insiders. Comparatively, 1.9% of Ameriprise Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Hamilton Lane and Ameriprise Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hamilton Lane 14.85% 66.32% 30.95%
Ameriprise Financial 14.85% 37.97% 1.51%

Valuation and Earnings

This table compares Hamilton Lane and Ameriprise Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hamilton Lane $244.03 million 10.46 $17.34 million $1.64 31.04
Ameriprise Financial $12.84 billion 1.55 $2.10 billion $14.94 9.93

Ameriprise Financial has higher revenue and earnings than Hamilton Lane. Ameriprise Financial is trading at a lower price-to-earnings ratio than Hamilton Lane, indicating that it is currently the more affordable of the two stocks.

Dividends

Hamilton Lane pays an annual dividend of $0.85 per share and has a dividend yield of 1.7%. Ameriprise Financial pays an annual dividend of $3.88 per share and has a dividend yield of 2.6%. Hamilton Lane pays out 51.8% of its earnings in the form of a dividend. Ameriprise Financial pays out 26.0% 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. Ameriprise Financial has raised its dividend for 9 consecutive years. Ameriprise Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Ameriprise Financial beats Hamilton Lane on 11 of the 16 factors compared between the two stocks.

Hamilton Lane Company Profile

Hamilton Lane Incorporated is an investment firm specializing in direct and fund of fund investments. It provides following services: separate accounts (customized to each individual client and structured as single client vehicles); specialized strategies (fund-of-funds, secondaries, co-investments, taft-hartley, distribution management); advisory relationships (including due diligence, strategic portfolio planning, monitoring and reporting services); and reporting and analytics solutions. For direct investments, the firm invests in mid and late venture, mature companies, growth equity, emerging growth, distressed debt, later stage, turnarounds, bridge financing, mezzanine financing, and buyouts in middle market companies. For fund of fund investments, it invests in mezzanine, venture capital, private equity, turnaround, secondary investments, real estate, and special situation funds. The firm invests in real estate investments. It also invest in technology, healthcare, education, natural resources, energy and essential consumer goods sectors, and cleantech. The firm prefer to invest $1 million to $100 million in companies. It invests in private equity markets in North America, Latin America, United States, Western Europe, Middle East, Africa, United Kingdom, Asia, Japan, and Australia. It prefer to have majority stake in companies. Hamilton Lane Incorporated was founded in 1991 and is based in Bala Cynwyd, Pennsylvania with additional thirteen offices across Europe, North America, and Asia.

Ameriprise Financial Company Profile

Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through five segments: Advice & Wealth Management, Asset Management, Annuities, Protection, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services primarily to retail clients through its advisors. The Asset Management segment offers investment management and advice, and investment products to retail, high net worth, and institutional clients through unaffiliated third party financial institutions and institutional sales force. Its products also 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 funds. The Annuities segment provides variable and fixed annuity products to individual clients through affiliated and unaffiliated advisors, and financial institutions. The Protection segment offers various products to address the protection and risk management needs of retail clients, including life, disability income, and property casualty insurance through advisors and affinity relationships. The Corporate & Other segment consist of long term care business, net investment income or loss on corporate level assets. 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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