Critical Contrast: T. Rowe Price Group (TROW) & The Competition
T. Rowe Price Group (NASDAQ: TROW) is one of 61 public companies in the “Investment Management” industry, but how does it compare to its competitors? We will compare T. Rowe Price Group to related businesses based on the strength of its valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Earnings and Valuation
This table compares T. Rowe Price Group and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|T. Rowe Price Group||$4.47 billion||$2.06 billion||15.95|
|T. Rowe Price Group Competitors||$817.28 million||$231.48 million||-11.09|
T. Rowe Price Group has higher revenue and earnings than its competitors. T. Rowe Price Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
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||32.64%||24.38%||18.94%|
|T. Rowe Price Group Competitors||29.76%||104.37%||27.63%|
T. Rowe Price Group pays an annual dividend of $2.28 per share and has a dividend yield of 2.5%. T. Rowe Price Group pays out 39.2% of its earnings in the form of a dividend. As a group, “Investment Management” companies pay a dividend yield of 3.4% and pay out 65.6% of their earnings in the form of a dividend. T. Rowe Price Group has raised its dividend for 30 consecutive years.
Institutional and Insider Ownership
73.6% of T. Rowe Price Group shares are owned by institutional investors. Comparatively, 47.8% 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, 26.7% 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.
Risk & Volatility
T. Rowe Price Group has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, T. Rowe Price Group’s competitors have a beta of 1.42, suggesting that their average share price is 42% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for T. Rowe Price Group and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|T. Rowe Price Group||2||6||2||0||2.00|
|T. Rowe Price Group Competitors||643||2051||2106||34||2.32|
T. Rowe Price Group currently has a consensus price target of $87.44, indicating a potential downside of 5.82%. As a group, “Investment Management” companies have a potential downside of 2.31%. 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.
T. Rowe Price Group competitors beat T. Rowe Price Group on 9 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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