Affiliated Managers Group, Inc. (AMG) vs Invesco Ltd. (IVZ)

Affiliated Managers Group, Inc. and Invesco Ltd. are both Asset Management companies. Invesco Ltd. is the larger, with a market value of $12.7B against $9.9B — 1.3× the size. Invesco Ltd. has negative trailing earnings, so its P/E is not meaningful; Affiliated Managers Group, Inc. trades at 12.3×. Invesco Ltd. grew revenue faster over the last twelve months: 12.2% against 11.8%. Affiliated Managers Group, Inc. has the higher net margin (37.7% vs −4.48%) and the higher return on invested capital (4.68% vs −1.34%). Both pay a dividend; Invesco Ltd. yields more (3.01% vs 0.01%). Across the 20 metrics below, Affiliated Managers Group, Inc. leads on 12 and Invesco Ltd. on 8.

Valuation

Metric AMG IVZ Asset Management median
P/E 12.31 n/m 13.99
P/S 4.46 1.84 2.76
P/B 2.58 1.20 0.85
Price to free cash flow 9.51 6.63 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.12% (2.41%) 4.72%
Free cash flow yield 10.51% 15.09% 4.44%

Profitability

Metric AMG IVZ Asset Management median
Gross margin 100.00% 66.01% 100.00%
Operating margin 21.52% (7.10%) 33.42%
Net margin 37.71% (4.48%) 13.37%
Free cash flow margin 46.91% 27.83% 12.36%
Return on equity 21.21% (2.81%) 4.79%
Return on assets 9.40% (1.10%) 1.55%
Return on invested capital 4.68% (1.34%) 2.97%

Growth

Metric AMG IVZ Asset Management median
Revenue growth (TTM) 11.80% 12.18% 7.42%
EPS growth (last fiscal year) 50.30% (235.59%) (6.67%)
Revenue growth, 5-year CAGR 0.46% 0.74% 12.51%
Net income growth, 5-year CAGR 28.80% 0.00% 0.00%

Health

Metric AMG IVZ Asset Management median
Debt to equity 0.76 0.81 0.44
Current ratio 1.24 1.31 1.30
Net debt to EBITDA 3.65 7.77 1.02

Dividend

Metric AMG IVZ Asset Management median
Dividend yield 0.01% 3.01% 6.60%
Payout ratio 0.00 — 0.94

Size

Metric AMG IVZ Asset Management median
Market cap 9.91b 12.72b 694.86m

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