Reviewing CI Financial (NYSE:CIXXF) & Ameriprise Financial (NYSE:AMP)

CI Financial (NYSE:CIXXFGet Free Report) and Ameriprise Financial (NYSE:AMPGet Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Dividends

CI Financial pays an annual dividend of $0.59 per share and has a dividend yield of 4.3%. Ameriprise Financial pays an annual dividend of $5.92 per share and has a dividend yield of 1.3%. CI Financial pays out -67.0% of its earnings in the form of a dividend. Ameriprise Financial pays out 20.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ameriprise Financial has raised its dividend for 20 consecutive years. CI Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and price targets for CI Financial and Ameriprise Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CI Financial 0 1 0 0 2.00
Ameriprise Financial 1 5 4 0 2.30

Ameriprise Financial has a consensus price target of $463.00, suggesting a potential downside of 1.20%. Given Ameriprise Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Ameriprise Financial is more favorable than CI Financial.

Profitability

This table compares CI Financial and Ameriprise Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CI Financial -1.90% 50.83% 5.21%
Ameriprise Financial 18.64% 73.83% 1.94%

Institutional & Insider Ownership

84.0% of Ameriprise Financial shares are held by institutional investors. 0.7% of Ameriprise Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares CI Financial and Ameriprise Financial”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CI Financial $2.03 billion 1.01 $3.72 million ($0.88) -15.49
Ameriprise Financial $15.54 billion 2.96 $2.56 billion $29.38 15.95

Ameriprise Financial has higher revenue and earnings than CI Financial. CI Financial is trading at a lower price-to-earnings ratio than Ameriprise Financial, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

CI Financial has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Ameriprise Financial has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Summary

Ameriprise Financial beats CI Financial on 13 of the 16 factors compared between the two stocks.

About CI Financial

(Get Free Report)

CI Financial Corp. is a publicly owned asset management holding company. Through its subsidiaries, the firm manages separate client focused equity, fixed income, and alternative investments portfolios. It also manages mutual funds, hedge funds, and fund of funds for its clients through its subsidiaries. The firm was founded in 1965 and is based in Toronto, Canada with additional offices in Vancouver, Canada; Calgary, Canada; and Montreal, Canada.

About Ameriprise Financial

(Get Free Report)

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.

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