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AMP vs. TW: A Head-to-Head Stock Comparison

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Here’s a clear look at AMP and TW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMP’s market capitalization of 51.73 billion USD is substantially larger than TW’s 32.86 billion USD, indicating a significant difference in their market valuations.

With betas of 1.23 for AMP and 0.84 for TW, both stocks show similar sensitivity to overall market movements.

SymbolAMPTW
Company NameAmeriprise Financial, Inc.Tradeweb Markets Inc.
CountryUSUS
SectorFinancial ServicesFinancial Services
IndustryAsset ManagementFinancial - Capital Markets
CEOJames M. Cracchiolo CPAWilliam E. Hult
Price543.3 USD138.98 USD
Market Cap51.73 billion USD32.86 billion USD
Beta1.230.84
ExchangeNYSENASDAQ
IPO DateSeptember 15, 2005April 4, 2019
ADRNoNo

Historical Performance

This chart compares the performance of AMP and TW by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AMP vs. TW: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AMP

56.06%

Asset Management Industry

Max
34.25%
Q3
18.22%
Median
11.24%
Q1
5.81%
Min
-5.72%

AMP’s Return on Equity of 56.06% is exceptionally high, placing it well beyond the typical range for the Asset Management industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

TW

9.08%

Financial - Capital Markets Industry

Max
42.02%
Q3
20.69%
Median
13.73%
Q1
3.33%
Min
-21.32%

TW’s Return on Equity of 9.08% is on par with the norm for the Financial - Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

AMP vs. TW: A comparison of their ROE against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Return on Invested Capital

AMP

38.36%

Asset Management Industry

Max
42.18%
Q3
20.06%
Median
8.68%
Q1
3.13%
Min
-16.42%

In the upper quartile for the Asset Management industry, AMP’s Return on Invested Capital of 38.36% signifies a highly effective use of its capital to generate profits when compared to its peers.

TW

8.03%

Financial - Capital Markets Industry

Max
30.24%
Q3
13.34%
Median
6.20%
Q1
-1.71%
Min
-16.91%

Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Capital Markets industry.

AMP vs. TW: A comparison of their ROIC against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Net Profit Margin

AMP

17.14%

Asset Management Industry

Max
91.66%
Q3
57.81%
Median
29.48%
Q1
15.70%
Min
-27.65%

AMP’s Net Profit Margin of 17.14% is aligned with the median group of its peers in the Asset Management industry. This indicates its ability to convert revenue into profit is typical for the sector.

TW

28.67%

Financial - Capital Markets Industry

Max
28.67%
Q3
13.52%
Median
10.47%
Q1
0.24%
Min
-9.55%

A Net Profit Margin of 28.67% places TW in the upper quartile for the Financial - Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

AMP vs. TW: A comparison of their Net Profit Margin against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Operating Profit Margin

AMP

21.38%

Asset Management Industry

Max
99.76%
Q3
78.28%
Median
34.76%
Q1
21.75%
Min
-48.25%

AMP’s Operating Profit Margin of 21.38% is in the lower quartile for the Asset Management industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

TW

39.21%

Financial - Capital Markets Industry

Max
56.86%
Q3
25.29%
Median
15.90%
Q1
0.51%
Min
-19.18%

An Operating Profit Margin of 39.21% places TW in the upper quartile for the Financial - Capital Markets industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AMP vs. TW: A comparison of their Operating Margin against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Profitability at a Glance

SymbolAMPTW
Return on Equity (TTM)56.06%9.08%
Return on Assets (TTM)1.67%7.11%
Return on Invested Capital (TTM)38.36%8.03%
Net Profit Margin (TTM)17.14%28.67%
Operating Profit Margin (TTM)21.38%39.21%
Gross Profit Margin (TTM)100.00%70.49%

Financial Strength

Current Ratio

AMP

38.84

Asset Management Industry

Max
12.44
Q3
5.76
Median
3.04
Q1
1.03
Min
0.01

AMP’s Current Ratio of 38.84 is exceptionally high, placing it well outside the typical range for the Asset Management industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

TW

2.82

Financial - Capital Markets Industry

Max
4.60
Q3
3.24
Median
1.32
Q1
0.96
Min
0.05

For the Financial - Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

AMP vs. TW: A comparison of their Current Ratio against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Debt-to-Equity Ratio

AMP

0.70

Asset Management Industry

Max
2.62
Q3
1.42
Median
0.76
Q1
0.34
Min
0.01

AMP’s Debt-to-Equity Ratio of 0.70 is typical for the Asset Management industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

TW

0.01

Financial - Capital Markets Industry

Max
3.63
Q3
1.68
Median
0.37
Q1
0.09
Min
0.00

Falling into the lower quartile for the Financial - Capital Markets industry, TW’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

AMP vs. TW: A comparison of their D/E Ratio against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Interest Coverage Ratio

AMP

11.42

Asset Management Industry

Max
13.30
Q3
6.30
Median
2.71
Q1
1.00
Min
-6.91

AMP’s Interest Coverage Ratio of 11.42 is in the upper quartile for the Asset Management industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

TW

227.55

Financial - Capital Markets Industry

Max
12.71
Q3
7.94
Median
1.92
Q1
0.24
Min
-7.71

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Capital Markets industry.

AMP vs. TW: A comparison of their Interest Coverage against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Financial Strength at a Glance

SymbolAMPTW
Current Ratio (TTM)38.842.82
Quick Ratio (TTM)38.842.82
Debt-to-Equity Ratio (TTM)0.700.01
Debt-to-Asset Ratio (TTM)0.020.00
Net Debt-to-EBITDA Ratio (TTM)1.03-1.25
Interest Coverage Ratio (TTM)11.42227.55

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMP and TW. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMP vs. TW: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMP vs. TW: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMP vs. TW: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AMP

1.11%

Asset Management Industry

Max
26.09%
Q3
11.60%
Median
6.37%
Q1
2.75%
Min
0.00%

AMP’s Dividend Yield of 1.11% is in the lower quartile for the Asset Management industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

TW

0.32%

Financial - Capital Markets Industry

Max
5.86%
Q3
1.74%
Median
0.79%
Q1
0.00%
Min
0.00%

TW’s Dividend Yield of 0.32% is consistent with its peers in the Financial - Capital Markets industry, providing a dividend return that is standard for its sector.

AMP vs. TW: A comparison of their Dividend Yield against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Dividend Payout Ratio

AMP

19.37%

Asset Management Industry

Max
1,034.88%
Q3
127.70%
Median
75.15%
Q1
34.21%
Min
0.00%

AMP’s Dividend Payout Ratio of 19.37% is in the lower quartile for the Asset Management industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

TW

17.09%

Financial - Capital Markets Industry

Max
128.06%
Q3
43.11%
Median
12.56%
Q1
0.00%
Min
0.00%

TW’s Dividend Payout Ratio of 17.09% is within the typical range for the Financial - Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AMP vs. TW: A comparison of their Payout Ratio against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Dividend at a Glance

SymbolAMPTW
Dividend Yield (TTM)1.11%0.32%
Dividend Payout Ratio (TTM)19.37%17.09%

Valuation

Price-to-Earnings Ratio

AMP

17.87

Asset Management Industry

Max
38.72
Q3
23.40
Median
11.45
Q1
8.80
Min
1.54

AMP’s P/E Ratio of 17.87 is within the middle range for the Asset Management industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

TW

56.54

Financial - Capital Markets Industry

Max
42.65
Q3
29.09
Median
20.52
Q1
14.58
Min
8.28

At 56.54, TW’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial - Capital Markets industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

AMP vs. TW: A comparison of their P/E Ratio against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Forward P/E to Growth Ratio

AMP

1.32

Asset Management Industry

Max
6.38
Q3
3.23
Median
1.55
Q1
0.89
Min
0.02

AMP’s Forward PEG Ratio of 1.32 is within the middle range of its peers in the Asset Management industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

TW

3.88

Financial - Capital Markets Industry

Max
4.05
Q3
2.46
Median
1.52
Q1
0.78
Min
0.02

A Forward PEG Ratio of 3.88 places TW in the upper quartile for the Financial - Capital Markets industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

AMP vs. TW: A comparison of their Forward PEG Ratio against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Price-to-Sales Ratio

AMP

2.96

Asset Management Industry

Max
13.75
Q3
7.92
Median
4.87
Q1
3.51
Min
0.02

In the lower quartile for the Asset Management industry, AMP’s P/S Ratio of 2.96 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

TW

17.99

Financial - Capital Markets Industry

Max
14.34
Q3
7.63
Median
2.98
Q1
1.50
Min
0.04

The P/S Ratio is often not a primary valuation tool in the Financial - Capital Markets industry.

AMP vs. TW: A comparison of their P/S Ratio against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Price-to-Book Ratio

AMP

9.86

Asset Management Industry

Max
5.33
Q3
2.75
Median
1.06
Q1
0.87
Min
0.00

The P/B Ratio is often not a primary valuation metric for the Asset Management industry.

TW

4.99

Financial - Capital Markets Industry

Max
9.60
Q3
6.00
Median
2.91
Q1
1.84
Min
0.53

TW’s P/B Ratio of 4.99 is within the conventional range for the Financial - Capital Markets industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AMP vs. TW: A comparison of their P/B Ratio against their respective Asset Management and Financial - Capital Markets industry benchmarks.

Valuation at a Glance

SymbolAMPTW
Price-to-Earnings Ratio (P/E, TTM)17.8756.54
Forward PEG Ratio (TTM)1.323.88
Price-to-Sales Ratio (P/S, TTM)2.9617.99
Price-to-Book Ratio (P/B, TTM)9.864.99
Price-to-Free Cash Flow Ratio (P/FCF, TTM)7.7538.81
EV-to-EBITDA (TTM)15.1231.06
EV-to-Sales (TTM)3.1817.29