Ameriprise Financial, Inc. (AMP) vs T. Rowe Price Group, Inc. (TROW)

Ameriprise Financial, Inc. and T. Rowe Price Group, Inc. are both Asset Management companies. Ameriprise Financial, Inc. is the larger, with a market value of $44.2B against $23.2B — 1.9× the size. T. Rowe Price Group, Inc. trades at the lower P/E: 11.0× against 11.3×. Ameriprise Financial, Inc. grew revenue faster over the last twelve months: 10.0% against 6.91%. T. Rowe Price Group, Inc. has the higher net margin (28.1% vs 21.0%) and the lower return on invested capital (19.8% vs 239.2%). Both pay a dividend; T. Rowe Price Group, Inc. yields more (4.75% vs 1.30%). Across the 20 metrics below, Ameriprise Financial, Inc. leads on 11 and T. Rowe Price Group, Inc. on 9.

Valuation

Metric AMP TROW Asset Management median
P/E 11.32 11.01 13.38
P/S 2.32 3.01 2.99
P/B 9.01 2.01 0.91
Price to free cash flow 6.28 14.53 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.84% 9.08% 4.67%
Free cash flow yield 15.93% 6.88% 4.85%

Profitability

Metric AMP TROW Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 33.90% 31.96% 27.27%
Net margin 20.99% 28.09% 11.89%
Free cash flow margin 36.98% 20.75% 5.96%
Return on equity 71.98% 19.20% 4.57%
Return on assets 2.18% 14.02% 1.40%
Return on invested capital 239.21% 19.77% 2.12%

Growth

Metric AMP TROW Asset Management median
Revenue growth (TTM) 10.03% 6.91% 7.26%
EPS growth (last fiscal year) 9.77% 0.98% (5.64%)
Revenue growth, 5-year CAGR 9.20% 3.34% 11.84%
Net income growth, 5-year CAGR 18.36% (2.47%) 0.00%

Health

Metric AMP TROW Asset Management median
Debt to equity 1.13 0.00 0.40
Current ratio 0.68 3.61 1.23
Net debt to EBITDA (0.71) (1.21) 1.06

Dividend

Metric AMP TROW Asset Management median
Dividend yield 1.30% 4.75% 6.43%
Payout ratio 0.15 0.52 0.91

Size

Metric AMP TROW Asset Management median
Market cap 44.22b 23.19b 692.54m

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