AMP vs Perpetual shares: which ASX financial is better value?
Choosing between AMP Ltd (ASX: AMP) and Perpetual Ltd (ASX: PPT) means sizing up two ASX-listed financial veterans with serious pedigree but starkly different value stories. AMP has been shaking things up in recent years, while Perpetual’s recent big acquisition has added scale and diversification. For investors chasing value or dividends from the financial sector, there are some eye-catching contrasts here.
The case for AMP
AMP is one of Australia’s oldest names in finance, with roots going back more than 170 years. Originally a mutual providing life insurance, AMP today offers superannuation, investment management, banking, and insurances to millions of Australians and corporate customers. According to its most recent public profile, AMP offloaded Collimate Capital and reshaped its advice business through a joint ventureâmoves designed to leave behind legacy issues and focus on a simpler, stronger core.
What jumps out from AMP’s fundamentals is its robust share price run, up 41.2% year to date. That’s streets ahead of the broader financials sector and reflects a major rebound in market confidence. The current P/E ratio (34.05) shows the market’s expectations for at least steady profitability, alongside a modest EPS of 7.4 cents per share. Dividend yield sits at 1.98%, lower than most sector peers, with partial franking of 20%. This is a far cry from AMP’s rich historical income, but it’s a reflection of how the company has prioritised capital strength and repositioning in recent years.
The case for Perpetual
Perpetual is another stalwart, best known as an active asset manager and trusted trustee. The company, founded in 1886, has three distinct but complementary arms: investments, private wealth (serving high net-worth clients), and corporate trust services. Perpetual’s defining recent move was its acquisition of the Pendal Group in early 2023, creating a $200 billion global multi-boutique asset manager. That’s turned PPT into a true global player rather than just an Aussie incumbent.
Looking at the data, Perpetual trades on a P/E of 37.6, which is slightly higher than AMP’s. Their EPS, however, is negative at -16.2 centsâsomething not reflected in the P/E (suggesting this is based on an adjusted or forward earnings measure). The standout for value-oriented investors? PPT’s dividend yield is a chunky 6.22%âabout three times AMP’sâthough current franking is not disclosed in the latest figures. The dividend per share for the past year stands at $1.26, which dwarfs AMP’s 5 cents per share. Year to date, Perpetual shares are up 11.6%: solid, but outpaced by AMP’s rally.
Valuation comparison
Here are the clearest side-by-side metrics from the data provided:
| AMP | Perpetual | |
|---|---|---|
| Market Cap | $6.20 billion | $1.93 billion |
| P/E Ratio | 34.05 | 37.60 |
| Earnings per share (EPS) | 0.074 | -0.162 |
| Dividend Yield | 1.98% | 6.22% |
| Dividend per share | $0.05 | $1.26 |
| Franking | 20% | – |
| Year To Date Return | 41.2% | 11.6% |
Note: Perpetual’s reported P/E ratio may be based on a different earnings measure (perhaps underlying or forward earnings), as its latest EPS is negative while its P/E is positive.
If you’re hunting for yield, Perpetual jumps out: a 6.22% yield on a 20+ dollar share price is a big income carrot, even as franking on recent dividends appears mixed or undisclosed. AMP, meanwhile, is trading on a lower yield but with franking at 20%. Both carry high-ish P/E ratios for financials, though these aren’t directly comparable to banks and insurers, as both companies have unique business models and periodic restructuring noise affecting their numbers.
Recent share price performance
Comparing the period 25 August â 21 September 2026:
- AMP: AMP shares climbed from $2.40 to $2.55, up about 6.3% during this stretch, in line with a strong year-to-date move of 41.2%.
- Perpetual: PPT was notably volatileâshares began the period at $19.68 and closed at $16.64, a slide of about 15.5%. Notably, the biggest drop came on 21 September 2026, with the stock shedding 15.1% in a single day. Year to date though, the shares are still up 11.6%.
Which is the better buy?
If you’re after explosive price momentum, AMP has been on an absolute tear this year, with a 41% year-to-date gain and resilience even as its dividend story remains muted. For those prioritising yield, Perpetual offers three times the dividend payout and a historical commitment to income, but its negative EPS raises questions about underlying earnings power right nowâand the stock has taken a beating in September.
Based on this snapshot, I’d lean toward Perpetual as better value for income investors who want fat, frequent dividends and some leverage to a global funds management franchise. However, the recent price wobble and negative EPS give me pause: this is not a “set and forget” investment and will likely see more volatility as Pendal integration plays out.
For growth-oriented or turnaround hunters, AMP’s strong price run and ongoing simplification make it a more energetic, if riskier, storyâbut the low yield means it’s less rewarding for patient dividend collectors.
My pick, for pure value and income, would be Perpetualâcautiously, with eyes wide open to volatility and the need for the business to get earnings back on a growth track.
The post AMP vs Perpetual: Which ASX financial stock is better value? appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.
