Contrasting Grupo Aval Acciones y Valores (NYSE:AVAL) and Affiliated Managers Group (NYSE:AMG)

Grupo Aval Acciones y Valores (NYSE:AVAL – Get Free Report) and Affiliated Managers Group (NYSE:AMG – Get Free Report) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Dividends

Grupo Aval Acciones y Valores pays an annual dividend of $0.14 per share and has a dividend yield of 3.2%. Affiliated Managers Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Grupo Aval Acciones y Valores pays out 38.9% of its earnings in the form of a dividend. Affiliated Managers Group pays out 0.2% 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.

Earnings and Valuation

This table compares Grupo Aval Acciones y Valores and Affiliated Managers Group”s top-line revenue, earnings per share and valuation.

Affiliated Managers Group has lower revenue, but higher earnings than Grupo Aval Acciones y Valores. Grupo Aval Acciones y Valores 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.

Profitability

This table compares Grupo Aval Acciones y Valores and Affiliated Managers Group’s net margins, return on equity and return on assets.

Risk and Volatility

Grupo Aval Acciones y Valores has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Affiliated Managers Group has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

0.2% of Grupo Aval Acciones y Valores shares are held by institutional investors. Comparatively, 95.3% of Affiliated Managers Group shares are held by institutional investors. 4.2% of Affiliated Managers Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Grupo Aval Acciones y Valores and Affiliated Managers Group, as provided by MarketBeat.com.

Affiliated Managers Group has a consensus price target of $350.14, indicating a potential upside of 22.62%. Given Affiliated Managers Group’s stronger consensus rating and higher possible upside, analysts plainly believe Affiliated Managers Group is more favorable than Grupo Aval Acciones y Valores.

Summary

Affiliated Managers Group beats Grupo Aval Acciones y Valores on 14 of the 16 factors compared between the two stocks.

About Grupo Aval Acciones y Valores

(Get Free Report)

Grupo Aval Acciones y Valores S.A. provides a range of financial services and products to public and private sector customers in Colombia and Central America. It offers traditional deposit services and products, including checking accounts, savings accounts, time deposits, and other deposits. The company also provides commercial loans comprising general purpose loans, working capital loans, leases, loans funded by development banks, corporate credit cards, and overdraft loans; consumer loans, such as payroll loans, personal loans, automobile and other vehicle loans, credit cards, overdrafts, leases, and general purpose loans; and microcredit and mortgage loans. In addition, the company offers pension and severance fund management services; investment banking, including services relating to capital markets, mergers and acquisitions, and project finance transactions; mobile and online banking services; and bancassurance, insurance, trust, bonded warehousing and brokerage transactions, real estate escrow services, merchandise and document storage and deposit, customs agency, cargo management, surety bond and merchandise distribution services, and payment and collection services. Further, it is involved in equity investments in various sectors, including infrastructure, energy and gas, agribusiness, and hospitality; and treasury operations. The company was incorporated in 1994 and is headquartered in Bogotá, Colombia. Grupo Aval Acciones y Valores S.A.

About Affiliated Managers Group

(Get Free Report)

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.