Reviewing Ameriprise Financial (NYSE:AMP) and Royalty Management (NASDAQ:RMCO)

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

Dividends

Ameriprise Financial pays an annual dividend of $6.40 per share and has a dividend yield of 1.3%. Royalty Management pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. Ameriprise Financial pays out 17.5% of its earnings in the form of a dividend. Royalty Management pays out -100.0% 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 increased its dividend for 21 consecutive years. Ameriprise Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Ameriprise Financial and Royalty Management”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameriprise Financial	$17.26 billion	2.64	$3.40 billion	$36.47	13.46
Royalty Management	$810,000.00	57.76	-$110,000.00	($0.01)	-309.00

Ameriprise Financial has higher revenue and earnings than Royalty Management. Royalty Management 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 and Risk

Ameriprise Financial has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Royalty Management has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Ameriprise Financial and Royalty Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameriprise Financial	2	5	3	1	2.27
Royalty Management	1	1	1	0	2.00

Ameriprise Financial currently has a consensus price target of $533.33, suggesting a potential upside of 8.66%. Given Ameriprise Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Ameriprise Financial is more favorable than Royalty Management.

Institutional & Insider Ownership

84.0% of Ameriprise Financial shares are held by institutional investors. Comparatively, 67.2% of Royalty Management shares are held by institutional investors. 0.7% of Ameriprise Financial shares are held by company insiders. Comparatively, 57.1% of Royalty Management shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ameriprise Financial	20.12%	64.97%	2.05%
Royalty Management	-9.22%	-2.94%	-2.13%

Summary

Ameriprise Financial beats Royalty Management on 15 of the 18 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 Royalty Management

Royalty Management Holding Corporation provides environmental consulting and services in the United States. It is also involved in investing or purchasing assets, such as real estate and mining permits, patents, intellectual property, and emerging technologies. The company was incorporated in 2021 and is based in Fishers, Indiana.