Comparing Virtus Investment Partners (VRTS) and AllianceBernstein Holding L.P. (AB)

Virtus Investment Partners (NASDAQ: VRTS) and AllianceBernstein Holding L.P. (NYSE:AB) are both investment management companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Virtus Investment Partners and AllianceBernstein Holding L.P., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Virtus Investment Partners 0 5 0 0 2.00
AllianceBernstein Holding L.P. 0 1 4 0 2.80

Virtus Investment Partners presently has a consensus target price of $130.00, suggesting a potential upside of 12.90%. AllianceBernstein Holding L.P. has a consensus target price of $27.50, suggesting a potential upside of 8.27%. Given Virtus Investment Partners’ higher possible upside, research analysts clearly believe Virtus Investment Partners is more favorable than AllianceBernstein Holding L.P..

Dividends

Virtus Investment Partners pays an annual dividend of $1.80 per share and has a dividend yield of 1.6%. AllianceBernstein Holding L.P. pays an annual dividend of $2.04 per share and has a dividend yield of 8.0%. Virtus Investment Partners pays out 35.2% of its earnings in the form of a dividend. AllianceBernstein Holding L.P. pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Virtus Investment Partners has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, AllianceBernstein Holding L.P. has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Profitability

This table compares Virtus Investment Partners and AllianceBernstein Holding L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Virtus Investment Partners 16.59% 14.32% 3.27%
AllianceBernstein Holding L.P. 6.38% 13.72% 13.72%

Institutional and Insider Ownership

96.3% of Virtus Investment Partners shares are owned by institutional investors. Comparatively, 19.3% of AllianceBernstein Holding L.P. shares are owned by institutional investors. 4.0% of Virtus Investment Partners shares are owned by insiders. Comparatively, 2.7% of AllianceBernstein Holding L.P. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Virtus Investment Partners and AllianceBernstein Holding L.P.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Virtus Investment Partners $322.55 million 2.56 $48.50 million $5.12 22.49
AllianceBernstein Holding L.P. $3.03 billion 0.79 $216.58 million $2.11 12.04

AllianceBernstein Holding L.P. has higher revenue and earnings than Virtus Investment Partners. AllianceBernstein Holding L.P. is trading at a lower price-to-earnings ratio than Virtus Investment Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Virtus Investment Partners beats AllianceBernstein Holding L.P. on 10 of the 16 factors compared between the two stocks.

Virtus Investment Partners Company Profile

Virtus Investment Partners, Inc. (Virtus) is a provider of investment management and related services to individuals and institutions. The Company provides its products in various forms and through multiple distribution channels. Its retail products include open-end mutual funds, closed-end funds, exchange traded funds, variable insurance funds, undertakings for collective investments in transferable securities (UCITS) and separately managed accounts. Its open-end mutual funds are distributed through intermediaries. Its closed-end funds trade on the New York Stock Exchange. Its variable insurance funds are available as investment options in variable annuities and life insurance products distributed by life insurance companies. Separately managed accounts consists of intermediary programs, sponsored and distributed by unaffiliated brokerage firms, and private client accounts, which are offered to the high net-worth clients of its affiliated managers.

AllianceBernstein Holding L.P. Company Profile

AllianceBernstein Holding L.P. is engaged in providing research, investment management and related services to a range of clients through its three buy-side distribution channels: Institutions, Retail and Private Wealth Management, and its sell-side business, Bernstein Research Services. The Company offers a range of investment services, including equity strategies, with global and regional portfolios across capitalization ranges and investment strategies, including value, growth and equities; traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; passive management, including index and enhanced index strategies; alternative investments, including hedge funds, fund of funds and private equity, and multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds. The Company’s services span various investment disciplines, including market capitalization, term and geographic locations.

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