Reviewing Amalgamated Financial (AMAL) & Its Peers

Amalgamated Financial (NASDAQ:AMAL) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Amalgamated Financial to related businesses based on the strength of its earnings, institutional ownership, dividends, profitability, risk, valuation and analyst recommendations.

Volatility and Risk

Amalgamated Financial has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Amalgamated Financial’s rivals have a beta of 0.52, meaning that their average share price is 48% less volatile than the S&P 500.

Institutional & Insider Ownership

75.9% of Amalgamated Financial shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 1.6% of Amalgamated Financial shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Amalgamated Financial and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amalgamated Financial	0	2	3	0	2.60
Amalgamated Financial Competitors	7463	30186	27756	1457	2.35

Amalgamated Financial currently has a consensus target price of $54.00, suggesting a potential upside of 8.24%. As a group, “Banks” companies have a potential upside of 15.66%. Given Amalgamated Financial’s rivals higher probable upside, analysts plainly believe Amalgamated Financial has less favorable growth aspects than its rivals.

Profitability

This table compares Amalgamated Financial and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amalgamated Financial	24.57%	15.00%	1.33%
Amalgamated Financial Competitors	15.66%	9.44%	0.93%

Dividends

Amalgamated Financial pays an annual dividend of $0.68 per share and has a dividend yield of 1.4%. Amalgamated Financial pays out 16.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. Amalgamated Financial has increased its dividend for 4 consecutive years.

Valuation & Earnings

This table compares Amalgamated Financial and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amalgamated Financial	$453.17 million	$104.45 million	12.26
Amalgamated Financial Competitors	$9.95 billion	$2.42 billion	17.38

Amalgamated Financial’s rivals have higher revenue and earnings than Amalgamated Financial. Amalgamated Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Amalgamated Financial beats its rivals on 8 of the 15 factors compared.

About Amalgamated Financial

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.