AB

We rate ALLIANCEBERNSTEIN HOLDING L.P. (AB) as a Reduce with a composite score of 42.5/100 at a current price of $38.47. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.

The rating is primarily driven by strength in stability (61th percentile) and value (46th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (25th percentile) and quality (36th percentile) tempers our overall conviction. We assign a No Moat rating (39/100), Low uncertainty, and Exemplary capital allocation.

Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

ALLIANCEBERNSTEIN HOLDING L.P. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 42.5/100 places it at rank #3187 in our full 7,333-stock universe. At $3.5B in market capitalization, ALLIANCEBERNSTEIN HOLDING L.P. is a mid-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

Momentum indicators (44th percentile) are neutral regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.

Margin data is not available for ALLIANCEBERNSTEIN HOLDING L.P., which limits our assessment of the company's cost structure and operating efficiency. We rely on factor-based signals to infer business quality in the absence of detailed margin data.

At a current price of $38.47, ALLIANCEBERNSTEIN HOLDING L.P. is trading near fair value based on current fundamentals. Our value factor score of 46/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 10.6x (roughly in line with the sector median of 11.9x), P/B of 3.0x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a Low uncertainty rating to ALLIANCEBERNSTEIN HOLDING L.P.. The company exhibits strong financial stability with a beta of 0.69, conservative leverage (0% D/E), and a stability factor in the 61th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.

Specific risk factors that inform our assessment include: low beta of 0.69 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 61th percentile and quality factor at the 36th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: conservative leverage (0% D/E) limits balance sheet risk; above-average stability (61th percentile) suggests predictable business dynamics; a 8.84% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate ALLIANCEBERNSTEIN HOLDING L.P.'s capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 27.9%, disciplined leverage (0% D/E), a 8.84% dividend yield. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — ALLIANCEBERNSTEIN HOLDING L.P. meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. The company returns capital via a 8.84% dividend yield, and the combination of 27.8% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, ALLIANCEBERNSTEIN HOLDING L.P. receives a Reduce rating with a composite score of 42.5/100 (rank #3187 of 7,333). Our quantitative framework assigns a No Moat (39/100, trend: stable), Low uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 42/100.

Our analysis does not support a constructive view on ALLIANCEBERNSTEIN HOLDING L.P. at this time. The combination of limited competitive advantages, low uncertainty, and exemplary capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.