AllianceBernstein (NYSE: AB) and Blackstone Group (NYSE:BX) are both mid-cap financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
AllianceBernstein pays an annual dividend of $2.04 per share and has a dividend yield of 7.5%. Blackstone Group pays an annual dividend of $1.76 per share and has a dividend yield of 5.0%. AllianceBernstein pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blackstone Group pays out 75.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blackstone Group has increased its dividend for 5 consecutive years.
Earnings and Valuation
This table compares AllianceBernstein and Blackstone Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AllianceBernstein||$3.03 billion||0.84||$216.58 million||$2.11||12.89|
|Blackstone Group||$5.13 billion||4.35||$1.04 billion||$2.32||15.25|
Blackstone Group has higher revenue and earnings than AllianceBernstein. AllianceBernstein is trading at a lower price-to-earnings ratio than Blackstone Group, indicating that it is currently the more affordable of the two stocks.
This table compares AllianceBernstein and Blackstone Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
AllianceBernstein has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Blackstone Group has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for AllianceBernstein and Blackstone Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AllianceBernstein presently has a consensus price target of $27.50, suggesting a potential upside of 1.10%. Blackstone Group has a consensus price target of $39.50, suggesting a potential upside of 11.61%. Given Blackstone Group’s stronger consensus rating and higher possible upside, analysts clearly believe Blackstone Group is more favorable than AllianceBernstein.
Insider & Institutional Ownership
20.8% of AllianceBernstein shares are owned by institutional investors. Comparatively, 46.4% of Blackstone Group shares are owned by institutional investors. 2.7% of AllianceBernstein shares are owned by company insiders. Comparatively, 1.0% of Blackstone Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Blackstone Group beats AllianceBernstein on 13 of the 17 factors compared between the two stocks.
AllianceBernstein Company Profile
AllianceBernstein Holding L.P. is engaged in providing research, investment management and related services to a range of clients through its three buy-side distribution channels: Institutions, Retail and Private Wealth Management, and its sell-side business, Bernstein Research Services. The Company offers a range of investment services, including equity strategies, with global and regional portfolios across capitalization ranges and investment strategies, including value, growth and equities; traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; passive management, including index and enhanced index strategies; alternative investments, including hedge funds, fund of funds and private equity, and multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds. The Company’s services span various investment disciplines, including market capitalization, term and geographic locations.
Blackstone Group Company Profile
The Blackstone Group L.P. is a global alternative asset manager. The Company’s alternative asset management businesses include investment vehicles focused on private equity, non-investment grade credit, secondary private equity funds of funds and multi-asset class strategies. It operates through four segments: Private Equity, Real Estate, Hedge Fund Solutions and Credit. The Private Equity segment includes its corporate private equity business, which consists of its corporate private equity funds, Blackstone Capital Partners (BCP) funds, its sector-focused corporate private equity funds, including its energy-focused funds, Blackstone Energy Partners (BEP) funds and its core private equity fund. The Blackstone Real Estate Partners funds target a range of opportunistic real estate and real estate related investments. The Hedge Fund Solutions segment consists of Blackstone Alternative Asset Management (BAAM). The Credit segment consists principally of GSO Capital Partners LP (GSO).
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