Jackson Financial vs Affiliated Managers Group
Jackson Financial and Affiliated Managers Group are compared on business models, financial performance, and market context, presented in a neutral, accessible way to help readers understand the landscape. Educational content, not financial advice.
Jackson Financial and Affiliated Managers Group are compared on business models, financial performance, and market context, presented in a neutral, accessible way to help readers understand the landsc...
Investment Analysis
Pros
- Jackson Financial offers a diversified portfolio of annuity products catering to retail and institutional clients in the U.S., supporting stable revenue streams.
- The company has a significant market cap around $6.9 billion and reported a positive net income in trailing twelve months, indicating operational profitability.
- Jackson Financial pays a consistent dividend yield around 3.17%, appealing to income-focused investors.
Considerations
- Recent return on equity (ROE) has dramatically declined to near 0.30%, well below its 10-year average of 15.66%, reflecting weakened profitability performance.
- The stock's price-to-earnings ratio is currently not applicable due to negative earnings per share in the latest period, signaling earnings volatility.
- Exposure to regulatory hurdles and margin compression in variable annuities presents execution risks and pressure on future profitability.
Pros
- Affiliated Managers Group has a unique business model by acquiring majority interests in boutique asset management firms, diversifying its revenue sources.
- The company benefits from scalable investment strategies and a broad affiliate network, positioning it well for growth in asset management fees.
- It has demonstrated continued access to capital markets through junior subordinated notes, supporting financial flexibility.
Considerations
- Affiliated Managers Group’s earnings are sensitive to market fluctuations and fee-based income volatility due to reliance on assets under management.
- The cyclical nature of investment management and market conditions can cause significant short-term earnings variability.
- Competition in asset management is intense, requiring continual innovation and partner retention to maintain growth momentum.
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