Analyzing Acadian Asset Management (NYSE:AAMI) and Ridgepost Capital (NYSE:RPC)

Ridgepost Capital (NYSE:RPC) and Acadian Asset Management (NYSE:AAMI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Volatility and Risk

Ridgepost Capital has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Acadian Asset Management has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Ridgepost Capital and Acadian Asset Management, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ridgepost Capital	0	2	2	0	2.50
Acadian Asset Management	0	4	1	0	2.20

Ridgepost Capital currently has a consensus price target of $13.00, indicating a potential upside of 67.53%. Acadian Asset Management has a consensus price target of $81.67, indicating a potential downside of 10.31%. Given Ridgepost Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Ridgepost Capital is more favorable than Acadian Asset Management.

Valuation & Earnings

This table compares Ridgepost Capital and Acadian Asset Management”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ridgepost Capital	$297.35 million	2.88	$19.50 million	$0.25	31.04
Acadian Asset Management	$563.70 million	5.73	$80.00 million	$2.83	32.18

Acadian Asset Management has higher revenue and earnings than Ridgepost Capital. Ridgepost Capital is trading at a lower price-to-earnings ratio than Acadian Asset Management, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ridgepost Capital and Acadian Asset Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ridgepost Capital	9.03%	21.02%	9.21%
Acadian Asset Management	15.17%	189.32%	21.26%

Dividends

Ridgepost Capital pays an annual dividend of $0.16 per share and has a dividend yield of 2.1%. Acadian Asset Management pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Ridgepost Capital pays out 64.0% of its earnings in the form of a dividend. Acadian Asset Management pays out 14.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider & Institutional Ownership

48.0% of Ridgepost Capital shares are held by institutional investors. Comparatively, 98.7% of Acadian Asset Management shares are held by institutional investors. 11.8% of Ridgepost Capital shares are held by company insiders. Comparatively, 22.6% of Acadian Asset Management shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Acadian Asset Management beats Ridgepost Capital on 12 of the 16 factors compared between the two stocks.

About Ridgepost Capital

P10, Inc., together with its subsidiaries, operates as a multi-asset class private market solutions provider in the alternative asset management industry in the United States. The company offers private equity, venture capital, private credit, impact investing, and private credit services, as well as primary fund of funds, secondary investment, and direct and co-investments services. It also provides tax credit transaction and consulting services. The company was founded in 1992 and is headquartered in Dallas, Texas.

About Acadian Asset Management

Acadian Asset Management Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.