Head-To-Head Analysis: T. Rowe Price Group (NASDAQ:TROW) and Its Rivals

T. Rowe Price Group (NASDAQ: TROW) is one of 62 public companies in the “Investment Management” industry, but how does it weigh in compared to its competitors? We will compare T. Rowe Price Group to related businesses based on the strength of its risk, institutional ownership, profitability, dividends, analyst recommendations, valuation and earnings.

Insider & Institutional Ownership

72.8% of T. Rowe Price Group shares are owned by institutional investors. Comparatively, 46.4% of shares of all “Investment Management” companies are owned by institutional investors. 3.6% of T. Rowe Price Group shares are owned by insiders. Comparatively, 24.7% of shares of all “Investment Management” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares T. Rowe Price Group and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
T. Rowe Price Group $4.22 billion $1.22 billion 15.34
T. Rowe Price Group Competitors $923.68 million $147.65 million 833.59

T. Rowe Price Group has higher revenue and earnings than its competitors. T. Rowe Price Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

T. Rowe Price Group has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, T. Rowe Price Group’s competitors have a beta of 1.42, suggesting that their average stock price is 42% more volatile than the S&P 500.

Dividends

T. Rowe Price Group pays an annual dividend of $2.28 per share and has a dividend yield of 2.4%. T. Rowe Price Group pays out 37.4% of its earnings in the form of a dividend. As a group, “Investment Management” companies pay a dividend yield of 3.7% and pay out 67.9% of their earnings in the form of a dividend. T. Rowe Price Group has increased its dividend for 30 consecutive years.

Profitability

This table compares T. Rowe Price Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
T. Rowe Price Group 33.10% 24.76% 19.41%
T. Rowe Price Group Competitors 28.76% 107.35% 26.61%

Analyst Ratings

This is a breakdown of recent ratings and target prices for T. Rowe Price Group and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
T. Rowe Price Group 2 5 2 0 2.00
T. Rowe Price Group Competitors 669 2157 2167 37 2.31

T. Rowe Price Group currently has a consensus target price of $90.63, indicating a potential downside of 3.15%. As a group, “Investment Management” companies have a potential upside of 14.60%. Given T. Rowe Price Group’s competitors stronger consensus rating and higher possible upside, analysts plainly believe T. Rowe Price Group has less favorable growth aspects than its competitors.

Summary

T. Rowe Price Group competitors beat T. Rowe Price Group on 10 of the 15 factors compared.

T. Rowe Price Group Company Profile

T. Rowe Price Group, Inc. is a financial services holding company. The Company provides global investment management services through its subsidiaries to investors across the world. The Company provides an array of Company sponsored the United States mutual funds, other sponsored pooled investment vehicles, sub advisory services, separate account management, recordkeeping, and related services to individuals, advisors, institutions, financial intermediaries and retirement plan sponsors. The Company distributes its products in countries located within three geographical regions: North America, Europe Middle East and Africa (EMEA), and Asia Pacific (APAC). It also offers specialized advisory services, including management of stable value investment contracts and a distribution management service for the disposition of equity securities its clients receive from third-party venture capital investment pools. As of December 31, 2016, it serviced clients in 45 countries across the world.

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