Associated Capital Group (NYSE:AC) and TD Ameritrade (NASDAQ:AMTD) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.
Profitability
This table compares Associated Capital Group and TD Ameritrade’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Associated Capital Group | -52.35% | 1.09% | 0.98% |
| TD Ameritrade | 36.72% | 27.18% | 5.73% |
Earnings and Valuation
This table compares Associated Capital Group and TD Ameritrade’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Associated Capital Group | $22.78 million | 37.95 | -$58.10 million | N/A | N/A |
| TD Ameritrade | $6.02 billion | 4.57 | $2.21 billion | $4.13 | 12.29 |
TD Ameritrade has higher revenue and earnings than Associated Capital Group.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Associated Capital Group and TD Ameritrade, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Associated Capital Group | 0 | 3 | 1 | 0 | 2.25 |
| TD Ameritrade | 1 | 11 | 1 | 0 | 2.00 |
Associated Capital Group presently has a consensus target price of $44.25, suggesting a potential upside of 15.11%. TD Ameritrade has a consensus target price of $44.67, suggesting a potential downside of 11.97%. Given Associated Capital Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Associated Capital Group is more favorable than TD Ameritrade.
Institutional & Insider Ownership
11.7% of Associated Capital Group shares are held by institutional investors. Comparatively, 91.6% of TD Ameritrade shares are held by institutional investors. 83.7% of Associated Capital Group shares are held by company insiders. Comparatively, 0.4% of TD Ameritrade shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
Associated Capital Group has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, TD Ameritrade has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
Dividends
Associated Capital Group pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. TD Ameritrade pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. TD Ameritrade pays out 30.0% of its earnings in the form of a dividend. TD Ameritrade has increased its dividend for 9 consecutive years. TD Ameritrade is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
TD Ameritrade beats Associated Capital Group on 9 of the 15 factors compared between the two stocks.
Associated Capital Group Company Profile
Associated Capital Group, Inc. provides investment advisory and asset management services in the United States. It offers alternative investment management, institutional research, and underwriting services. The company was founded in 2015 and is headquartered in Rye, New York.
TD Ameritrade Company Profile
TD Ameritrade Holding Corporation provides securities brokerage and related technology-based financial services to retail investors and traders, and independent registered investment advisors (RIAs) in the United States. It offers trade execution, clearing, and margin lending services; futures and foreign exchange trade execution services; and trustee, custodial, and other trust-related services to retirement plans and other custodial accounts, as well as provides cash sweep and deposit account products through third-party relationships. The company offers retail brokerage services for common and preferred stocks; exchange-traded funds (ETFs); options; futures; foreign exchange; mutual funds; fixed income products; primary and secondary offerings of fixed income securities, closed-end funds, and preferred stocks; margin lending; cash management services; and annuities. It operates tdameritrade.com, a Web platform for self-directed retail investors; thinkorswim, a desktop platform for traders; and TD Ameritrade Mobile, which allows on-the-go investors and traders to trade and monitor accounts from Web-enabled mobile devices. The company also offers investor education services for stocks, options, income investing, and portfolio management; AdvisorDirect, a national referral service for investors; real-time market news, insights, and investor education services; and self-directed brokerage services to employees of corporations. TD Ameritrade Holding Corporation provides its services primarily through the Internet, a network of retail branches, mobile trading applications, interactive voice response, and registered representatives through telephone. The company was founded in 1971 and is headquartered in Omaha, Nebraska.
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