Acadian Asset Management (NYSE:AAMI) vs. Sound Point Meridian Capital (NYSE:SPMC) Head to Head Review
by Tristan Rich · The Markets DailyAcadian Asset Management (NYSE:AAMI – Get Free Report) and Sound Point Meridian Capital (NYSE:SPMC – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Profitability
This table compares Acadian Asset Management and Sound Point Meridian Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acadian Asset Management | 15.17% | 189.32% | 21.26% |
| Sound Point Meridian Capital | N/A | N/A | N/A |
Insider & Institutional Ownership
98.7% of Acadian Asset Management shares are owned by institutional investors. 22.6% of Acadian Asset Management shares are owned by insiders. Comparatively, 0.9% of Sound Point Meridian Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings for Acadian Asset Management and Sound Point Meridian Capital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acadian Asset Management | 0 | 4 | 1 | 0 | 2.20 |
| Sound Point Meridian Capital | 1 | 2 | 1 | 0 | 2.00 |
Acadian Asset Management currently has a consensus target price of $81.67, indicating a potential downside of 10.37%. Sound Point Meridian Capital has a consensus target price of $15.12, indicating a potential upside of 57.14%. Given Sound Point Meridian Capital’s higher probable upside, analysts clearly believe Sound Point Meridian Capital is more favorable than Acadian Asset Management.
Risk and Volatility
Acadian Asset Management has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Sound Point Meridian Capital has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
Dividends
Acadian Asset Management pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Sound Point Meridian Capital pays an annual dividend of $2.40 per share and has a dividend yield of 24.9%. Acadian Asset Management pays out 14.1% of its earnings in the form of a dividend. Sound Point Meridian Capital pays out -41.5% 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. Sound Point Meridian Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Acadian Asset Management and Sound Point Meridian Capital”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Acadian Asset Management | $668.50 million | 4.84 | $80.00 million | $2.83 | 32.20 |
| Sound Point Meridian Capital | $72.51 million | 2.72 | -$118.49 million | ($5.78) | -1.67 |
Acadian Asset Management has higher revenue and earnings than Sound Point Meridian Capital. Sound Point Meridian 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.
Summary
Acadian Asset Management beats Sound Point Meridian Capital on 12 of the 15 factors compared between the two stocks.
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.
About Sound Point Meridian Capital
Sound Point Meridian Capital Inc. is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches. Sound Point Meridian Capital Inc. is based in NEW YORK.