Affiliated Managers Group, Inc. (AMG) vs StepStone Group Inc. (STEP)

Affiliated Managers Group, Inc. and StepStone Group Inc. are both Asset Management companies. Affiliated Managers Group, Inc. is the larger, with a market value of $9.1B against $5.2B — 1.8× the size. StepStone Group Inc. has negative trailing earnings, so its P/E is not meaningful; Affiliated Managers Group, Inc. trades at 11.3×. StepStone Group Inc. grew revenue faster over the last twelve months: 48.5% against 11.8%. Affiliated Managers Group, Inc. has the higher net margin (37.7% vs −30.5%) and the higher return on invested capital (4.68% vs −42.5%). Both pay a dividend; StepStone Group Inc. yields more (4.03% vs 0.01%). Across the 18 metrics below, Affiliated Managers Group, Inc. leads on 13 and StepStone Group Inc. on 5.

Valuation

Metric AMG STEP Asset Management median
P/E 11.31 n/m 13.38
P/S 4.10 1.74 2.99
P/B 2.37 3.60 0.91
Price to free cash flow 8.74 n/m 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.84% (18.11%) 4.67%
Free cash flow yield 11.44% (12.57%) 4.85%

Profitability

Metric AMG STEP Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 21.52% (58.22%) 27.27%
Net margin 37.71% (30.53%) 11.89%
Free cash flow margin 46.91% (21.88%) 5.96%
Return on equity 21.21% (55.72%) 4.57%
Return on assets 9.40% (9.77%) 1.40%
Return on invested capital 4.68% (42.51%) 2.12%

Growth

Metric AMG STEP Asset Management median
Revenue growth (TTM) 11.80% 48.46% 7.26%
EPS growth (last fiscal year) 50.30% (169.05%) (5.64%)
Revenue growth, 5-year CAGR 0.46% 20.41% 11.84%
Net income growth, 5-year CAGR 28.80% 0.00% 0.00%

Health

Metric AMG STEP Asset Management median
Debt to equity 0.76 1.50 0.40
Current ratio 1.24 0.19 1.23
Net debt to EBITDA 3.65 (0.08) 1.06

Dividend

Metric AMG STEP Asset Management median
Dividend yield 0.01% 4.03% 6.43%
Payout ratio 0.00 — 0.91

Size

Metric AMG STEP Asset Management median
Market cap 9.06b 5.17b 692.54m

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