Invesco Ltd. (IVZ) vs TPG Inc. (TPG)

Invesco Ltd. and TPG Inc. are both Asset Management companies. TPG Inc. is the larger, with a market value of $16.7B against $12.7B — 1.3× the size. Invesco Ltd. has negative trailing earnings, so its P/E is not meaningful; TPG Inc. trades at 36.0×. TPG Inc. grew revenue faster over the last twelve months: 30.1% against 12.2%. TPG Inc. has the higher net margin (4.67% vs −4.48%) and the higher return on invested capital (7.97% vs −1.34%). Both pay a dividend; TPG Inc. yields more (5.27% vs 3.01%). Across the 20 metrics below, TPG Inc. leads on 14 and Invesco Ltd. on 6.

Valuation

Metric IVZ TPG Asset Management median
P/E n/m 36.03 13.99
P/S 1.84 1.38 2.76
P/B 1.20 1.87 0.85
Price to free cash flow 6.63 7.63 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (2.41%) 2.78% 4.72%
Free cash flow yield 15.09% 13.10% 4.44%

Profitability

Metric IVZ TPG Asset Management median
Gross margin 66.01% 100.00% 100.00%
Operating margin (7.10%) 15.54% 33.42%
Net margin (4.48%) 4.67% 13.37%
Free cash flow margin 27.83% 18.15% 12.36%
Return on equity (2.81%) 6.47% 4.79%
Return on assets (1.10%) 1.82% 1.55%
Return on invested capital (1.34%) 7.97% 2.97%

Growth

Metric IVZ TPG Asset Management median
Revenue growth (TTM) 12.18% 30.07% 7.42%
EPS growth (last fiscal year) (235.59%) 207.14% (6.67%)
Revenue growth, 5-year CAGR 0.74% 17.17% 12.51%
Net income growth, 5-year CAGR 0.00% (33.68%) 0.00%

Health

Metric IVZ TPG Asset Management median
Debt to equity 0.81 0.63 0.44
Current ratio 1.31 0.31 1.30
Net debt to EBITDA 7.77 1.06 1.02

Dividend

Metric IVZ TPG Asset Management median
Dividend yield 3.01% 5.27% 6.60%
Payout ratio — 3.39 0.94

Size

Metric IVZ TPG Asset Management median
Market cap 12.72b 16.68b 694.86m

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