Financial Comparison: Franklin Resources (BEN) & Oaktree Capital Group (OAK)
Franklin Resources (NYSE: BEN) and Oaktree Capital Group (NYSE:OAK) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Risk & Volatility
Franklin Resources has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Oaktree Capital Group has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.
Insider & Institutional Ownership
45.0% of Franklin Resources shares are held by institutional investors. Comparatively, 21.8% of Oaktree Capital Group shares are held by institutional investors. 21.6% of Franklin Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Franklin Resources pays an annual dividend of $0.80 per share and has a dividend yield of 1.9%. Oaktree Capital Group pays an annual dividend of $5.24 per share and has a dividend yield of 11.3%. Franklin Resources pays out 26.1% of its earnings in the form of a dividend. Oaktree Capital Group pays out 114.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Franklin Resources has raised its dividend for 35 consecutive years.
Earnings and Valuation
This table compares Franklin Resources and Oaktree Capital Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Franklin Resources||$6.39 billion||3.74||$2.31 billion||$3.06||14.02|
|Oaktree Capital Group||$1.51 billion||1.98||$497.59 million||$4.57||10.19|
Franklin Resources has higher revenue and earnings than Oaktree Capital Group. Oaktree Capital Group is trading at a lower price-to-earnings ratio than Franklin Resources, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Franklin Resources and Oaktree Capital Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oaktree Capital Group||1||5||1||0||2.00|
Franklin Resources currently has a consensus price target of $43.33, indicating a potential upside of 1.03%. Oaktree Capital Group has a consensus price target of $47.20, indicating a potential upside of 1.40%. Given Oaktree Capital Group’s stronger consensus rating and higher possible upside, analysts clearly believe Oaktree Capital Group is more favorable than Franklin Resources.
This table compares Franklin Resources and Oaktree Capital Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oaktree Capital Group||19.17%||20.11%||4.95%|
Franklin Resources beats Oaktree Capital Group on 11 of the 16 factors compared between the two stocks.
About Franklin Resources
Franklin Resources, Inc. is a holding company. The Company, along with its subsidiaries, operates as Franklin Templeton Investments. It is a global investment management company that provides investment management and related services to retail, institutional and high net-worth clients in jurisdictions around the world. The Company offers its investment products and services under the Franklin, Templeton, Franklin Mutual Series, Franklin Bissett, Fiduciary Trust, Darby, Balanced Equity Management, K2 and LibertyShares brand names. Its products include investment funds and institutional, high net-worth and separately managed accounts (collectively, sponsored investment products (SIPs)). It offers various types of SIPs, such as the United States funds, cross-border funds, local/regional funds, and other managed accounts, alternative investment products and trusts. Its investment funds include the United States-registered funds, non-United States-registered funds and unregistered funds.
About Oaktree Capital Group
Oaktree Capital Group, LLC (Oaktree) is an investment manager specializing in alternative investments. The Company operates through investment management segment, which consists of the investment management services that the Company provides to its clients. The Company manages investments in a range of strategies within approximately six asset classes, which include corporate debt, convertible securities, distressed debt, control investing, real estate and listed equities. The Funds managed by Oaktree include commingled funds, separate accounts and collateralized loan obligation vehicles (CLOs). The commingled funds include open-end and closed-end limited partnerships in which it makes an investment and for which it serves as the general partner. CLOs are structured finance vehicles in which the Company typically makes an investment and for which it serves as collateral manager. Its clientele includes the United States pension plans and corporations and/or their pension funds.
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