BlackRock (BLK) vs State Street Corporation (STT)

BlackRock and State Street Corporation are both Asset Management companies. BlackRock is the larger, with a market value of $174.4B against $49.8B — 3.5× the size. State Street Corporation trades at the lower P/E: 15.7× against 25.6×. BlackRock grew revenue faster over the last twelve months: 26.5% against 2.00%. BlackRock has the higher net margin (24.1% vs 14.0%) and the higher return on invested capital (8.37% vs 0.00%). Both pay a dividend; State Street Corporation yields more (3.93% vs 2.62%). Across the 22 metrics below, State Street Corporation leads on 13 and BlackRock on 9.

Valuation

Metric BLK STT Asset Management median
P/E 25.63 15.73 14.62
P/S 6.18 2.18 2.97
P/B 2.91 2.03 0.94
Price to free cash flow 47.96 24.80 8.93
EV/EBITDA 17.08 n/m 10.32
EV/Sales 6.49 (3.63) 5.72
Earnings yield 3.90% 6.36% 4.53%
Free cash flow yield 2.08% 4.03% 4.65%

Profitability

Metric BLK STT Asset Management median
Gross margin 100.00% 65.45% 100.00%
Operating margin 32.57% 0.00% 33.03%
Net margin 24.09% 14.00% 13.53%
Free cash flow margin 12.88% 8.78% 12.44%
Return on equity 12.27% 13.29% 4.83%
Return on assets 4.08% 0.81% 1.57%
Return on invested capital 8.37% 0.00% 3.04%

Growth

Metric BLK STT Asset Management median
Revenue growth (TTM) 26.54% 2.00% 6.97%
EPS growth (last fiscal year) (15.95%) 14.49% —
Revenue growth, 5-year CAGR 8.37% 13.38% 12.13%
Net income growth, 5-year CAGR 2.40% 3.78% 0.00%

Health

Metric BLK STT Asset Management median
Debt to equity 0.33 0.91 0.42
Current ratio 3.59 0.59 1.28
Net debt to EBITDA 1.13 0.00 1.06

Dividend

Metric BLK STT Asset Management median
Dividend yield 2.62% 3.93% 6.92%
Payout ratio 0.58 0.34 0.77

Size

Metric BLK STT Asset Management median
Market cap 174.38b 49.75b 721.34m

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