Ameriprise Financial (NYSE: AMP) and Triangle Capital (NYSE:TCAP) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Valuation & Earnings
This table compares Ameriprise Financial and Triangle Capital’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ameriprise Financial||$12.03 billion||1.71||$1.48 billion||$12.27||11.59|
|Triangle Capital||$123.00 million||4.43||-$28.65 million||$1.55||7.32|
Ameriprise Financial has higher revenue and earnings than Triangle Capital. Triangle Capital is trading at a lower price-to-earnings ratio than Ameriprise Financial, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
88.2% of Ameriprise Financial shares are held by institutional investors. Comparatively, 45.2% of Triangle Capital shares are held by institutional investors. 1.5% of Ameriprise Financial shares are held by insiders. Comparatively, 3.5% of Triangle Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current recommendations for Ameriprise Financial and Triangle Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ameriprise Financial currently has a consensus target price of $166.13, suggesting a potential upside of 17.11%. Triangle Capital has a consensus target price of $15.42, suggesting a potential upside of 35.83%. Given Triangle Capital’s higher probable upside, analysts clearly believe Triangle Capital is more favorable than Ameriprise Financial.
Risk & Volatility
Ameriprise Financial has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, Triangle Capital has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
This table compares Ameriprise Financial and Triangle Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ameriprise Financial pays an annual dividend of $3.60 per share and has a dividend yield of 2.5%. Triangle Capital pays an annual dividend of $1.20 per share and has a dividend yield of 10.6%. Ameriprise Financial pays out 29.3% of its earnings in the form of a dividend. Triangle Capital pays out 77.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ameriprise Financial has raised its dividend for 8 consecutive years.
Ameriprise Financial beats Triangle Capital on 11 of the 16 factors compared between the two stocks.
Ameriprise Financial Company Profile
Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through Advice & Wealth Management, Asset Management, Annuities, and Protection segments. The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services primarily to retail clients through its advisors. The Asset Management segment offers investment management and advice, and investment products to retail, high net worth, and institutional clients through unaffiliated third party financial institutions and institutional sales force. This segment's products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property funds. The Annuities segment provides variable and fixed annuity products to individual clients through affiliated and unaffiliated advisors, and financial institutions. The Protection segment offers various products to address the protection and risk management needs of retail clients, including life, disability income, and property casualty insurance through advisors and affinity relationships. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.
Triangle Capital Company Profile
Triangle Capital Corporation is a business development company specializing in private equity and mezzanine investments. It focuses on leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. The firm prefers to make investments in many business sectors including manufacturing, distribution, transportation, energy, communications, health services, restaurants, media, and others. It primarily invests in companies located throughout the United States, with an emphasis on the Southeast and Midatlantic. The firm makes equity investments between $1 million and $25 million and debt investments between $5 million and $30 million per transaction, in companies having annual revenues between $20 million and $200 million and EBITDA between $3 million and $35 million and can also co-invest. It typically makes investments between $5 million and $35 million. It primarily invests in senior subordinated debt securities secured by second lien security interests in portfolio company assets, coupled with equity interests. The firm also invests in senior debt securities secured by first lien security interests in portfolio companies. Triangle Capital Corporation was incorporated on October 10, 2006 and is based in Raleigh, North Carolina.
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