Head to Head Comparison: T. Rowe Price Group (TROW) vs. OM Asset Management (OMAM)
T. Rowe Price Group (NASDAQ: TROW) and OM Asset Management (NYSE:OMAM) are both financials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Valuation and Earnings
This table compares T. Rowe Price Group and OM Asset Management’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|T. Rowe Price Group||$4.22 billion||6.00||$1.22 billion||$6.11||17.10|
|OM Asset Management||$663.50 million||2.79||$126.40 million||$0.68||24.82|
Volatility & Risk
T. Rowe Price Group has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, OM Asset Management has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.
This table compares T. Rowe Price Group and OM Asset Management’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%|
|OM Asset Management||9.49%||114.45%||12.94%|
This is a breakdown of current ratings for T. Rowe Price Group and OM Asset Management, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|T. Rowe Price Group||2||5||2||0||2.00|
|OM Asset Management||0||0||6||0||3.00|
T. Rowe Price Group currently has a consensus target price of $91.00, indicating a potential downside of 12.91%. OM Asset Management has a consensus target price of $18.70, indicating a potential upside of 10.78%. Given OM Asset Management’s stronger consensus rating and higher possible upside, analysts clearly believe OM Asset Management is more favorable than T. Rowe Price Group.
Insider and Institutional Ownership
72.1% of T. Rowe Price Group shares are owned by institutional investors. Comparatively, 64.9% of OM Asset Management shares are owned by institutional investors. 3.6% of T. Rowe Price Group shares are owned by insiders. Comparatively, 1.5% of OM Asset Management shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
T. Rowe Price Group pays an annual dividend of $2.28 per share and has a dividend yield of 2.2%. OM Asset Management pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. T. Rowe Price Group pays out 37.3% of its earnings in the form of a dividend. OM Asset Management pays out 52.9% 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. OM Asset Management has increased its dividend for 30 consecutive years. T. Rowe Price Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
T. Rowe Price Group beats OM Asset Management on 10 of the 17 factors compared between the two stocks.
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.
OM Asset Management Company Profile
OM Asset Management plc is a global, diversified, multi-boutique asset management company. As of December 31, 2016, the Company operated its business through its eight Affiliates, each of which operated autonomously and employed its own investment processes. Its Affiliates include Acadian Asset Management LLC; Barrow, Hanley, Mewhinney & Strauss, LLC; Campbell Global, LLC; Copper Rock Capital Partners LLC; Heitman LLC; Investment Counselors of Maryland, LLC; Landmark Partners, LLC, and Thompson, Siegel & Walmsley LLC. It works with boutique asset managers, and the Company leverages the resources within its organization to engage with its Affiliates and provide them with capabilities unavailable to specialist asset management firms. The Company works with its Affiliates to identify and execute upon opportunities for their businesses in areas, such as business line expansion and product development, as well as activities required for the operation of investment boutiques.
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