Financial Engines (FNGN) & T. Rowe Price Group (TROW) Head-To-Head Survey
Financial Engines (NASDAQ: FNGN) and T. Rowe Price Group (NASDAQ:TROW) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.
Volatility and Risk
Financial Engines has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500. Comparatively, T. Rowe Price Group has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.
This table compares Financial Engines and T. Rowe Price Group’s 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%|
Institutional and Insider Ownership
72.2% of T. Rowe Price Group shares are owned by institutional investors. 9.3% of Financial Engines shares are owned by company insiders. Comparatively, 3.6% of T. Rowe Price Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Financial Engines pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. T. Rowe Price Group pays an annual dividend of $2.28 per share and has a dividend yield of 2.2%. Financial Engines pays out 36.4% of its earnings in the form of a dividend. T. Rowe Price Group pays out 37.4% 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. T. Rowe Price Group has increased its dividend for 30 consecutive years. T. Rowe Price Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Financial Engines and T. Rowe Price Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Financial Engines||$423.94 million||4.22||$28.56 million||$0.77||36.69|
|T. Rowe Price Group||$4.22 billion||5.90||$1.22 billion||$6.10||16.85|
T. Rowe Price Group has higher revenue and earnings than Financial Engines. T. Rowe Price Group is trading at a lower price-to-earnings ratio than Financial Engines, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Financial Engines and T. Rowe Price Group, 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|
Financial Engines presently has a consensus target price of $38.33, indicating a potential upside of 35.69%. T. Rowe Price Group has a consensus target price of $90.63, indicating a potential downside of 11.83%. Given Financial Engines’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Financial Engines is more favorable than T. Rowe Price Group.
T. Rowe Price Group beats Financial Engines on 10 of the 17 factors compared between the two stocks.
About Financial Engines
Financial Engines, Inc. is a provider of independent, technology-enabled financial advisory services, discretionary portfolio management, personalized investment advice, financial and retirement income planning, and financial education and guidance. The Company offers personalized plans for saving, investing, and generating retirement income, as well as by providing assessments of retirement income needs and readiness. The Company’s advice and planning services cover employer-sponsored defined contribution (DC) accounts (401(k), 457, and 403(b) plans), individual retirement account (IRA) accounts, and taxable accounts. For individuals, the Company provides discretionary portfolio management, personalized investment advice, financial and retirement income planning, financial education and guidance. The Company maintains two types of relationships with individuals: DC plan participants in the workplace and Individuals outside the workplace.
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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