Head-To-Head Contrast: Artisan Partners Asset Management (NYSE:APAM) & CI Financial (NYSE:CIXXF)

Artisan Partners Asset Management (NYSE:APAMGet Free Report) and CI Financial (NYSE:CIXXFGet Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Dividends

Artisan Partners Asset Management pays an annual dividend of $2.72 per share and has a dividend yield of 5.9%. CI Financial pays an annual dividend of $0.59 per share and has a dividend yield of 4.7%. Artisan Partners Asset Management pays out 86.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CI Financial pays out -2,948.5% of its earnings in the form of a dividend. Artisan Partners Asset Management has raised its dividend for 1 consecutive years. Artisan Partners Asset Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Artisan Partners Asset Management and CI Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Artisan Partners Asset Management 0 1 1 0 2.50
CI Financial 0 3 0 0 2.00

Artisan Partners Asset Management presently has a consensus target price of $43.00, indicating a potential downside of 6.05%. Given Artisan Partners Asset Management’s stronger consensus rating and higher probable upside, analysts plainly believe Artisan Partners Asset Management is more favorable than CI Financial.

Institutional and Insider Ownership

86.5% of Artisan Partners Asset Management shares are held by institutional investors. 18.5% of Artisan Partners Asset Management shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Artisan Partners Asset Management has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, CI Financial has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Earnings and Valuation

This table compares Artisan Partners Asset Management and CI Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Artisan Partners Asset Management $975.10 million 3.75 $222.29 million $3.16 14.48
CI Financial $2.03 billion 0.97 $3.72 million ($0.02) -632.68

Artisan Partners Asset Management has higher earnings, but lower revenue than CI Financial. CI Financial is trading at a lower price-to-earnings ratio than Artisan Partners Asset Management, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Artisan Partners Asset Management and CI Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Artisan Partners Asset Management 22.80% 73.85% 16.77%
CI Financial 0.21% 40.15% 5.43%

Summary

Artisan Partners Asset Management beats CI Financial on 15 of the 17 factors compared between the two stocks.

About Artisan Partners Asset Management

(Get Free Report)

Artisan Partners Asset Management Inc. is publicly owned investment manager. It provides its services to pension and profit sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds and non-U.S. funds, as well as mutual funds, non-U.S. funds and collective trusts. It manages separate client-focused equity and fixed income portfolios. The firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of companies across all market capitalization. For fixed income component of its portfolio the firm invests in non-investment grade corporate bonds and secured and unsecured loans. It employs fundamental analysis to create its portfolios. Artisan Partners Asset Management Inc. was founded in 1994 and is based in Milwaukee, Wisconsin with additional offices in Atlanta, Georgia; New York City; San Francisco, California; Leawood, Kansas; and London, United Kingdom.

About CI Financial

(Get Free Report)

CI Financial Corp. is a publicly owned asset management holding company. Through its subsidiaries, the firm manages separate client focused equity, fixed income, and alternative investments portfolios. It also manages mutual funds, hedge funds, and fund of funds for its clients through its subsidiaries. The firm was founded in 1965 and is based in Toronto, Canada with additional offices in Vancouver, Canada; Calgary, Canada; and Montreal, Canada.

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