Analyzing Janus Capital Group (JNS) and BlackRock (BLK)

BlackRock (NYSE: BLK) and Janus Capital Group (NYSE:JNS) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Valuation and Earnings

This table compares BlackRock and Janus Capital Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BlackRock $12.49 billion 6.77 $4.97 billion $30.30 17.33
Janus Capital Group N/A N/A N/A $0.76 N/A

BlackRock has higher revenue and earnings than Janus Capital Group. Janus Capital Group is trading at a lower price-to-earnings ratio than BlackRock, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

83.3% of BlackRock shares are held by institutional investors. Comparatively, 90.2% of Janus Capital Group shares are held by institutional investors. 1.9% of BlackRock shares are held by company insiders. Comparatively, 2.1% of Janus Capital Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for BlackRock and Janus Capital Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackRock 0 4 8 0 2.67
Janus Capital Group 0 0 0 0 N/A

BlackRock presently has a consensus target price of $542.42, suggesting a potential upside of 3.32%.

Dividends

BlackRock pays an annual dividend of $10.00 per share and has a dividend yield of 1.9%. Janus Capital Group pays an annual dividend of $0.44 per share. BlackRock pays out 33.0% of its earnings in the form of a dividend. Janus Capital Group pays out 57.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BlackRock has raised its dividend for 7 consecutive years and Janus Capital Group has raised its dividend for 8 consecutive years. BlackRock is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares BlackRock and Janus Capital Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackRock 39.79% 12.54% 1.67%
Janus Capital Group 12.54% 7.26% 4.48%

Summary

BlackRock beats Janus Capital Group on 7 of the 12 factors compared between the two stocks.

BlackRock Company Profile

BlackRock, Inc. (BlackRock) is an investment management company. BlackRock provides a range of investment and risk management services to institutional and retail clients worldwide. Its diverse platform of active (alpha) and index (beta) investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients. Its product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Its products are offered directly and through intermediaries in a range of vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds (ETFs), separate accounts, collective investment funds and other pooled investment vehicles. It offers its Aladdin investment system, as well as risk management, outsourcing, advisory and technology services, to institutional investors and wealth management intermediaries under the BlackRock Solutions name.

Janus Capital Group Company Profile

Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.

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