Ameriprise Financial, Inc. (AMP) vs BlackRock (BLK)

Ameriprise Financial, Inc. and BlackRock are both Asset Management companies. BlackRock is the larger, with a market value of $174.4B against $42.9B — 4.1× the size. Ameriprise Financial, Inc. trades at the lower P/E: 11.7× against 25.6×. BlackRock grew revenue faster over the last twelve months: 26.5% against 10.6%. BlackRock has the higher net margin (24.1% vs 20.2%) and the lower return on invested capital (8.37% vs 154.8%). Both pay a dividend; BlackRock yields more (2.62% vs 1.46%). Across the 22 metrics below, Ameriprise Financial, Inc. leads on 15 and BlackRock on 7.

Valuation

Metric AMP BLK Asset Management median
P/E 11.73 25.63 14.62
P/S 2.32 6.18 2.97
P/B 7.11 2.91 0.94
Price to free cash flow 5.61 47.96 8.93
EV/EBITDA 6.29 17.08 10.32
EV/Sales 2.12 6.49 5.72
Earnings yield 8.53% 3.90% 4.53%
Free cash flow yield 17.82% 2.08% 4.65%

Profitability

Metric AMP BLK Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 33.99% 32.57% 33.03%
Net margin 20.24% 24.09% 13.53%
Free cash flow margin 41.35% 12.88% 12.44%
Return on equity 63.43% 12.27% 4.83%
Return on assets 2.06% 4.08% 1.57%
Return on invested capital 154.82% 8.37% 3.04%

Growth

Metric AMP BLK Asset Management median
Revenue growth (TTM) 10.64% 26.54% 6.97%
EPS growth (last fiscal year) 9.77% (15.95%) —
Revenue growth, 5-year CAGR 9.20% 8.37% 12.13%
Net income growth, 5-year CAGR 18.36% 2.40% 0.00%

Health

Metric AMP BLK Asset Management median
Debt to equity 0.99 0.33 0.42
Current ratio 0.71 3.59 1.28
Net debt to EBITDA (0.71) 1.13 1.06

Dividend

Metric AMP BLK Asset Management median
Dividend yield 1.46% 2.62% 6.92%
Payout ratio 0.23 0.58 0.77

Size

Metric AMP BLK Asset Management median
Market cap 42.85b 174.38b 721.34m

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