BlackRock (NYSE: BLK) and Janus Capital Group (NYSE:JNS) are both mid-cap financials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
This is a breakdown of recent ratings and target prices for BlackRock and Janus Capital Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Janus Capital Group||1||0||0||0||1.00|
This table compares BlackRock and Janus Capital Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Janus Capital Group||12.54%||7.26%||4.48%|
Valuation and Earnings
This table compares BlackRock and Janus Capital Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BlackRock||$11.16 billion||7.98||$3.17 billion||$30.30||18.33|
|Janus Capital Group||N/A||N/A||N/A||$0.76||18.64|
BlackRock has higher revenue and earnings than Janus Capital Group. BlackRock is trading at a lower price-to-earnings ratio than Janus Capital Group, indicating that it is currently the more affordable of the two stocks.
BlackRock pays an annual dividend of $10.00 per share and has a dividend yield of 1.8%. Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. BlackRock pays out 33.0% of its earnings in the form of a dividend. Janus Capital Group pays out 57.9% 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. BlackRock has raised its dividend for 7 consecutive years and Janus Capital Group has raised its dividend for 8 consecutive years. Janus Capital Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
83.5% of BlackRock shares are owned by institutional investors. Comparatively, 90.2% of Janus Capital Group shares are owned by institutional investors. 1.9% of BlackRock shares are owned by company insiders. Comparatively, 2.1% of Janus Capital Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
BlackRock Company Profile
BlackRock, Inc. (BlackRock) is an investment management company. BlackRock provides a range of investment and risk management services to institutional and retail clients worldwide. Its diverse platform of active (alpha) and index (beta) investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients. Its product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Its products are offered directly and through intermediaries in a range of vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds (ETFs), separate accounts, collective investment funds and other pooled investment vehicles. It offers its Aladdin investment system, as well as risk management, outsourcing, advisory and technology services, to institutional investors and wealth management intermediaries under the BlackRock Solutions name.
Janus Capital Group Company Profile
Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.
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