Contrasting Ameriprise Financial (NYSE:AMP) & Schroders (OTCMKTS:SHNWF)

Ameriprise Financial (NYSE:AMP) and Schroders (OTCMKTS:SHNWF) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ameriprise Financial and Schroders, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameriprise Financial	2	4	1	1	2.13
Schroders	1	2	2	0	2.20

Ameriprise Financial presently has a consensus target price of $534.71, suggesting a potential upside of 9.54%. Given Ameriprise Financial’s higher possible upside, equities analysts clearly believe Ameriprise Financial is more favorable than Schroders.

Earnings & Valuation

This table compares Ameriprise Financial and Schroders”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameriprise Financial	$17.26 billion	2.67	$3.40 billion	$32.14	15.19
Schroders	$3.80 billion	2.25	$532.88 million	N/A	N/A

Ameriprise Financial has higher revenue and earnings than Schroders.

Insider & Institutional Ownership

84.0% of Ameriprise Financial shares are held by institutional investors. 0.6% of Ameriprise Financial 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.

Profitability

This table compares Ameriprise Financial and Schroders’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameriprise Financial	18.30%	65.90%	2.02%
Schroders	N/A	N/A	N/A

Volatility & Risk

Ameriprise Financial has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Schroders has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Summary

Ameriprise Financial beats Schroders on 10 of the 13 factors compared between the two stocks.

About Ameriprise Financial

Ameriprise Financial, Inc., together with its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates. The Asset Management segment offers investment management, advice, and products to retail, high net worth, and institutional clients through third-party financial institutions, advisor networks, direct retail, and its institutional sales force under the Columbia Threadneedle Investments brand name. This segment products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property and infrastructure funds. The Retirement & Protection Solutions segment provides variable annuity products, as well as life and disability income insurance products to retail clients. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm’s alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. The company was formerly known as New Schroders plc and changed its name to Schroders plc in April 2000. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.