T. Rowe Price Group (TROW) and Its Peers Critical Contrast
T. Rowe Price Group (NASDAQ: TROW) is one of 61 publicly-traded companies in the “Investment Management” industry, but how does it contrast to its peers? We will compare T. Rowe Price Group to related companies based on the strength of its valuation, dividends, analyst recommendations, risk, earnings, institutional ownership and profitability.
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 37.4% 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 64.2% of their earnings in the form of a dividend. T. Rowe Price Group has raised its dividend for 30 consecutive years.
Insider & Institutional Ownership
73.5% of T. Rowe Price Group shares are owned by institutional investors. Comparatively, 47.7% of shares of all “Investment Management” companies are owned by institutional investors. 3.6% of T. Rowe Price Group shares are owned by company insiders. Comparatively, 26.8% of shares of all “Investment Management” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares T. Rowe Price Group and its peers’ 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||29.75%||104.17%||27.39%|
Valuation and Earnings
This table compares T. Rowe Price Group and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|T. Rowe Price Group||$4.47 billion||$2.06 billion||15.23|
|T. Rowe Price Group Competitors||$817.53 million||$231.65 million||-11.98|
T. Rowe Price Group has higher revenue and earnings than its peers. T. Rowe Price Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of recent recommendations for T. Rowe Price Group and its peers, as provided 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||655||2099||2138||34||2.31|
T. Rowe Price Group presently has a consensus price target of $90.63, indicating a potential downside of 2.45%. As a group, “Investment Management” companies have a potential downside of 1.21%. Given T. Rowe Price Group’s peers stronger consensus rating and higher probable upside, analysts clearly believe T. Rowe Price Group has less favorable growth aspects than its peers.
Risk & Volatility
T. Rowe Price Group has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, T. Rowe Price Group’s peers have a beta of 1.44, suggesting that their average share price is 44% more volatile than the S&P 500.
T. Rowe Price Group peers beat T. Rowe Price Group on 9 of the 15 factors compared.
About T. Rowe Price Group
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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