Financial Review: AllianceBernstein Holding L.P. (AB) versus Its Peers

AllianceBernstein Holding L.P. (NYSE: AB) is one of 61 publicly-traded companies in the “Investment Management” industry, but how does it contrast to its rivals? We will compare AllianceBernstein Holding L.P. to similar businesses based on the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Insider & Institutional Ownership

19.4% of AllianceBernstein Holding L.P. shares are held by institutional investors. Comparatively, 47.8% of shares of all “Investment Management” companies are held by institutional investors. 2.7% of AllianceBernstein Holding L.P. shares are held by insiders. Comparatively, 26.7% of shares of all “Investment Management” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for AllianceBernstein Holding L.P. and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AllianceBernstein Holding L.P. 0 2 3 0 2.60
AllianceBernstein Holding L.P. Competitors 643 2049 2106 34 2.32

AllianceBernstein Holding L.P. currently has a consensus price target of $26.33, indicating a potential upside of 5.97%. As a group, “Investment Management” companies have a potential downside of 2.05%. Given AllianceBernstein Holding L.P.’s stronger consensus rating and higher probable upside, research analysts plainly believe AllianceBernstein Holding L.P. is more favorable than its rivals.

Dividends

AllianceBernstein Holding L.P. pays an annual dividend of $1.96 per share and has a dividend yield of 7.9%. AllianceBernstein Holding L.P. pays out 89.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Investment Management” companies pay a dividend yield of 3.4% and pay out 65.6% of their earnings in the form of a dividend.

Profitability

This table compares AllianceBernstein Holding L.P. and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AllianceBernstein Holding L.P. 6.74% 13.28% 13.28%
AllianceBernstein Holding L.P. Competitors 29.76% 104.37% 27.63%

Risk and Volatility

AllianceBernstein Holding L.P. has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, AllianceBernstein Holding L.P.’s rivals have a beta of 1.42, indicating that their average share price is 42% more volatile than the S&P 500.

Earnings and Valuation

This table compares AllianceBernstein Holding L.P. and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
AllianceBernstein Holding L.P. $232.17 million N/A 11.40
AllianceBernstein Holding L.P. Competitors $817.28 million $231.48 million -11.61

AllianceBernstein Holding L.P.’s rivals have higher revenue and earnings than AllianceBernstein Holding L.P.. AllianceBernstein Holding L.P. is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

AllianceBernstein Holding L.P. rivals beat AllianceBernstein Holding L.P. on 8 of the 14 factors compared.

AllianceBernstein Holding L.P. 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.

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