APAM vs DHIL

For growth investors, Artisan Partners Asset Management Inc.

(APAM) is the stronger pick with 7. 6% revenue growth year-over-year, versus 4. 5% for Diamond Hill Investment Group, Inc. (DHIL). Artisan Partners Asset Management Inc. (APAM) offers the better valuation at 9. 3x trailing P/E (9. 8x forward), making it the more compelling value choice. Analysts rate Artisan Partners Asset Management Inc. (APAM) a "Hold" — based on 15 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Artisan Partners Asset Management Inc.

(APAM) is the cheapest at 9. 3x versus Diamond Hill Investment Group, Inc. at 9. 8x. On forward P/E, Diamond Hill Investment Group, Inc. is actually cheaper at 9. 5x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Diamond Hill Investment Group, Inc. wins at 1. 14x versus Artisan Partners Asset Management Inc. 's 2. 76x — a reasonable growth-adjusted valuation.

Over the past 5 years, Diamond Hill Investment Group, Inc.

(DHIL) delivered a total return of +28. 1%, compared to +1. 5% for Artisan Partners Asset Management Inc. (APAM). Over 10 years, the gap is even starker: APAM returned +127. 8% versus DHIL's +54. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Diamond Hill Investment Group, Inc.

(DHIL) is the lower-risk stock at 0. 57β versus Artisan Partners Asset Management Inc. 's 1. 17β — meaning APAM is approximately 104% more volatile than DHIL relative to the S&P 500. On balance sheet safety, Artisan Partners Asset Management Inc. (APAM) carries a lower debt/equity ratio of 52% versus 36% for Diamond Hill Investment Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Artisan Partners Asset Management Inc.

(APAM) is pulling ahead at 7. 6% versus 4. 5% for Diamond Hill Investment Group, Inc. (DHIL). On earnings-per-share growth, the picture is similar: Diamond Hill Investment Group, Inc. grew EPS 14. 4% year-over-year, compared to 10. 7% for Artisan Partners Asset Management Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Diamond Hill Investment Group, Inc.

(DHIL) is the more profitable company, earning 30. 9% net margin versus 24. 3% for Artisan Partners Asset Management Inc. — meaning it keeps 30. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DHIL leads at 38. 4% versus 33. 4% for APAM. At the gross margin level — before operating expenses — DHIL leads at 96. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Diamond Hill Investment Group, Inc. (DHIL) is the more undervalued stock at a PEG of 1. 14x versus Artisan Partners Asset Management Inc. 's 2. 76x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Diamond Hill Investment Group, Inc. (DHIL) trades at 9. 5x forward P/E versus 9. 8x for Artisan Partners Asset Management Inc. — 0. 3x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

Artisan Partners Asset Management Inc. (APAM) offers the highest yield at 10. 4%, versus 5. 7% for Diamond Hill Investment Group, Inc. (DHIL).

For long-horizon retirement investors, Diamond Hill Investment Group, Inc.

(DHIL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 57), 5. 7% yield). Both have compounded well over 10 years (DHIL: +54. 5%, APAM: +127. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.