Financial Analysis: Ameriprise Financial (NYSE:AMP) and Highest Performances (NASDAQ:HPH)

Ameriprise Financial (NYSE:AMP) and Highest Performances (NASDAQ:HPH) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Insider & Institutional Ownership

83.9% of Ameriprise Financial shares are held by institutional investors. 0.7% of Ameriprise Financial shares are held by company insiders. Comparatively, 87.6% of Highest Performances shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Ameriprise Financial and Highest Performances”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameriprise Financial	$16.28 billion	2.66	$2.56 billion	$29.38	14.83
Highest Performances	$81.59 million	3.09	-$6.01 million	N/A	N/A

Ameriprise Financial has higher revenue and earnings than Highest Performances.

Volatility & Risk

Ameriprise Financial has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Highest Performances has a beta of -0.31, meaning that its stock price is 131% less volatile than the S&P 500.

Profitability

This table compares Ameriprise Financial and Highest Performances’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameriprise Financial	18.64%	73.83%	1.94%
Highest Performances	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Ameriprise Financial and Highest Performances, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameriprise Financial	1	4	5	0	2.40
Highest Performances	0	0	0	0	N/A

Ameriprise Financial currently has a consensus target price of $464.33, suggesting a potential upside of 6.55%. Given Ameriprise Financial’s higher possible upside, equities analysts plainly believe Ameriprise Financial is more favorable than Highest Performances.

Summary

Ameriprise Financial beats Highest Performances on 9 of the 11 factors compared between the two stocks.

About Ameriprise Financial

Ameriprise Financial, Inc., together with its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates. The Asset Management segment offers investment management, advice, and products to retail, high net worth, and institutional clients through third-party financial institutions, advisor networks, direct retail, and its institutional sales force under the Columbia Threadneedle Investments brand name. This segment 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 and infrastructure funds. The Retirement & Protection Solutions segment provides variable annuity products, as well as life and disability income insurance products to retail clients. 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.

About Highest Performances

Highest Performances Holdings Inc. engages in the provision of financial technology services in China. The company distributes publicly raised fund and privately raised securities investment fund products through online and offline. It also offers insurance consulting, trust consulting, asset management, wealth management, and other ancillary services. The company was formerly known as Puyi Inc. and changed its name to Highest Performances Holdings Inc. in March 2024. Highest Performances Holdings Inc. was founded in 2010 and is headquartered in Guangzhou, China.