Franklin Resources Inc (BEN) vs T. Rowe Price Group, Inc. (TROW)

Franklin Resources Inc and T. Rowe Price Group, Inc. are both Asset Management companies. T. Rowe Price Group, Inc. is the larger, with a market value of $22.2B against $16.5B — 1.3× the size. T. Rowe Price Group, Inc. trades at the lower P/E: 10.6× against 22.5×. Franklin Resources Inc grew revenue faster over the last twelve months: 7.94% against 6.97%. T. Rowe Price Group, Inc. has the higher net margin (28.6% vs 8.14%) and the higher return on invested capital (18.4% vs 2.27%). Both pay a dividend; Franklin Resources Inc yields more (4.61% vs 4.58%). Across the 22 metrics below, T. Rowe Price Group, Inc. leads on 16 and Franklin Resources Inc on 6.

Valuation

Metric BEN TROW Asset Management median
P/E 22.46 10.57 14.62
P/S 1.82 2.97 2.97
P/B 1.32 2.02 0.94
Price to free cash flow 73.45 13.49 8.93
EV/EBITDA 21.51 6.68 10.32
EV/Sales 3.11 2.55 5.72
Earnings yield 4.45% 9.46% 4.53%
Free cash flow yield 1.36% 7.41% 4.65%

Profitability

Metric BEN TROW Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 9.71% 30.76% 33.03%
Net margin 8.14% 28.59% 13.53%
Free cash flow margin 2.48% 22.05% 12.44%
Return on equity 5.84% 19.85% 4.83%
Return on assets 2.21% 14.62% 1.57%
Return on invested capital 2.27% 18.41% 3.04%

Growth

Metric BEN TROW Asset Management median
Revenue growth (TTM) 7.94% 6.97% 6.97%
EPS growth (last fiscal year) 7.06% 0.98% —
Revenue growth, 5-year CAGR 9.52% 3.34% 12.13%
Net income growth, 5-year CAGR (9.65%) (2.47%) 0.00%

Health

Metric BEN TROW Asset Management median
Debt to equity 1.22 0.00 0.42
Current ratio 1.48 4.04 1.28
Net debt to EBITDA 7.18 (1.21) 1.06

Dividend

Metric BEN TROW Asset Management median
Dividend yield 4.61% 4.58% 6.92%
Payout ratio 0.74 0.72 0.77

Size

Metric BEN TROW Asset Management median
Market cap 16.54b 22.24b 721.34m

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