AllianceBernstein (NYSE:AB) & Vinci Partners Investments (NASDAQ:VINP) Critical Contrast

Vinci Partners Investments (NASDAQ:VINP) and AllianceBernstein (NYSE:AB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

This table compares Vinci Partners Investments and AllianceBernstein’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vinci Partners Investments	37.79%	15.00%	8.52%
AllianceBernstein	9.22%	16.23%	16.22%

Dividends

Vinci Partners Investments pays an annual dividend of $0.64 per share and has a dividend yield of 6.2%. AllianceBernstein pays an annual dividend of $3.08 per share and has a dividend yield of 7.9%. Vinci Partners Investments pays out 103.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AllianceBernstein pays out 88.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AllianceBernstein is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Vinci Partners Investments and AllianceBernstein”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vinci Partners Investments	$91.03 million	6.09	$44.19 million	$0.62	16.61
AllianceBernstein	$4.16 billion	1.08	$264.18 million	$3.49	11.18

AllianceBernstein has higher revenue and earnings than Vinci Partners Investments. AllianceBernstein is trading at a lower price-to-earnings ratio than Vinci Partners Investments, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Vinci Partners Investments and AllianceBernstein, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vinci Partners Investments	0	0	2	0	3.00
AllianceBernstein	0	1	4	0	2.80

Vinci Partners Investments presently has a consensus target price of $13.50, indicating a potential upside of 31.07%. AllianceBernstein has a consensus target price of $42.40, indicating a potential upside of 8.71%. Given Vinci Partners Investments’ stronger consensus rating and higher possible upside, equities analysts plainly believe Vinci Partners Investments is more favorable than AllianceBernstein.

Risk & Volatility

Vinci Partners Investments has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, AllianceBernstein has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Institutional & Insider Ownership

34.1% of Vinci Partners Investments shares are owned by institutional investors. Comparatively, 19.3% of AllianceBernstein shares are owned by institutional investors. 49.3% of Vinci Partners Investments shares are owned by insiders. Comparatively, 2.7% of AllianceBernstein shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

AllianceBernstein beats Vinci Partners Investments on 9 of the 16 factors compared between the two stocks.

About Vinci Partners Investments

Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.

About AllianceBernstein

AllianceBernstein Holding L.P. is a publicly owned investment manager. The firm is a related adviser The firm manages separate client focused portfolios for its clients. The firm primarily invests in common and preferred stocks, warrants and convertible securities, government and corporate fxed-income securities, commodities, currencies, real estate-related assets and infation-protected securities. The firm employs quantitative analysis along with long-term purchases, short-term purchases, trading, short sales, margin transactions, option strategies including writing covered options, uncovered options and spread strategies to make its investments. The firm obtains external research to complement its in-house research. The firm was formerly known as Alliance Capital Management Holding LP. AllianceBernstein Holding L.P. was founded in 1967 and is based in Nashville,Tennessee.