Critical Contrast: AllianceBernstein Income Fund (ACG) and The Competition

AllianceBernstein Income Fund (NYSE: ACG) is one of 547 publicly-traded companies in the “Closed End Funds” industry, but how does it weigh in compared to its peers? We will compare AllianceBernstein Income Fund to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Volatility and Risk

AllianceBernstein Income Fund has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500. Comparatively, AllianceBernstein Income Fund’s peers have a beta of 0.55, indicating that their average stock price is 45% less volatile than the S&P 500.

Institutional and Insider Ownership

23.5% of shares of all “Closed End Funds” companies are owned by institutional investors. 5.1% of shares of all “Closed End Funds” companies are owned by 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.

Earnings and Valuation

This table compares AllianceBernstein Income Fund and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AllianceBernstein Income Fund N/A N/A -791.00
AllianceBernstein Income Fund Competitors $238.76 million $44.95 million 266.81

AllianceBernstein Income Fund’s peers have higher revenue and earnings than AllianceBernstein Income Fund. AllianceBernstein Income Fund is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

AllianceBernstein Income Fund pays an annual dividend of $0.37 per share and has a dividend yield of 4.7%. AllianceBernstein Income Fund pays out -3,700.0% of its earnings in the form of a dividend. As a group, “Closed End Funds” companies pay a dividend yield of 8.1% and pay out 91.5% of their earnings in the form of a dividend.

Profitability

This table compares AllianceBernstein Income Fund and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AllianceBernstein Income Fund -56.13% -3.11% -1.95%
AllianceBernstein Income Fund Competitors -16.40% 7.69% 5.90%

Analyst Ratings

This is a breakdown of current recommendations for AllianceBernstein Income Fund and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AllianceBernstein Income Fund 0 0 1 0 3.00
AllianceBernstein Income Fund Competitors 237 1575 1940 33 2.47

AllianceBernstein Income Fund currently has a consensus target price of $0.30, indicating a potential downside of 96.21%. As a group, “Closed End Funds” companies have a potential upside of 49.76%. Given AllianceBernstein Income Fund’s peers higher probable upside, analysts clearly believe AllianceBernstein Income Fund has less favorable growth aspects than its peers.

Summary

AllianceBernstein Income Fund peers beat AllianceBernstein Income Fund on 10 of the 13 factors compared.

About AllianceBernstein Income Fund

AllianceBernstein Income Fund, Inc. (the Fund) is a diversified, closed-end management investment company. The investment objective of the Fund is high current income consistent with preservation of capital. The Fund invests its net assets in income-producing securities. The Fund invests its total assets in securities issued or guaranteed by the United States Government, its agencies or instrumentalities, and repurchase agreements pertaining to the United States Government securities. The Fund’s portfolio of investments includes capital goods; communications, including media and telecommunications; consumer cyclical, including automotive, entertainment, retailers and other; consumer non-cyclical; energy; other industrial; services; technology; transportation services; financial institutions, including banking, finance, other finance and real estate investment trusts, and utilities, such as electric. AllianceBernstein L.P. is the Fund’s investment advisor.

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