Contrasting Ameriprise Financial (NYSE:AMP) & Galaxy Digital (NASDAQ:GLXY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ameriprise Financial	20.24%	64.19%	2.15%
Galaxy Digital	-0.75%	-6.25%	-1.67%

Institutional & Insider Ownership

83.9% of Ameriprise Financial shares are held by institutional investors. 0.6% of Ameriprise Financial shares are held by company insiders. Comparatively, 51.5% of Galaxy Digital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Ameriprise Financial and Galaxy Digital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameriprise Financial	$19.50 billion	2.27	$3.56 billion	$41.46	11.85
Galaxy Digital	$61.36 billion	0.15	-$241.35 million	($0.65)	-35.48

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

Volatility & Risk

Ameriprise Financial has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Galaxy Digital has a beta of 5.11, indicating that its share price is 411% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Ameriprise Financial and Galaxy Digital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameriprise Financial	1	5	4	1	2.45
Galaxy Digital	1	3	10	0	2.64

Ameriprise Financial currently has a consensus price target of $555.33, suggesting a potential upside of 13.00%. Galaxy Digital has a consensus price target of $39.58, suggesting a potential upside of 71.65%. Given Galaxy Digital’s stronger consensus rating and higher probable upside, analysts clearly believe Galaxy Digital is more favorable than Ameriprise Financial.

Summary

Ameriprise Financial beats Galaxy Digital on 9 of the 15 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 Galaxy Digital

Galaxy Digital Holdings Ltd. is a financial services and an investment management company, which engages in the digital asset, cryptocurrency, and block chain technology sectors. It operates through the following segments: Trading, Principal Investment, Asset Management, Investment Banking, Mining, and Corporate & Other. The Trading segment manages positions in cryptocurrency and other liquid digital assets contributed to the business at the outset and continues to invest and trade in those and related assets. The Principal Investment segment includes portfolio of private principal investments across the block chain ecosystem, including early- and later-stage equity, pre-launch network contributions, and other structured alternative investments. The Asset Management segment manages capital on behalf of third parties in exchange for management fees and performance-based compensation. The Investment Banking segment offers the spectrum of investment banking, including, but not limited to general corporate advisory, mergers and acquisition, transaction advisory, restructuring and capital rising. The Mining segment focuses to provide financial services for North American miners, through its partnerships. The Corporate & Other consists of the partnership’s unallocated corporate overhead and other unallocated costs not identifiable to any of the reportable segments. The company was founded by Michael Edward Novogratz on February 10, 2006 and is headquartered in New York, NY.