Principal Financial Group, Inc. (PFG) vs State Street Corporation (STT)

Principal Financial Group, Inc. and State Street Corporation are both Asset Management companies. State Street Corporation is the larger, with a market value of $49.8B against $24.4B — 2.0× the size. State Street Corporation trades at the lower P/E: 15.7× against 16.1×. Principal Financial Group, Inc. grew revenue faster over the last twelve months: 3.72% against 2.00%. State Street Corporation has the higher net margin (14.0% vs 9.93%) and the lower return on invested capital (0.00% vs 10.3%). Both pay a dividend; State Street Corporation yields more (3.93% vs 3.35%). Across the 21 metrics below, State Street Corporation leads on 14 and Principal Financial Group, Inc. on 7.

Valuation

Metric PFG STT Asset Management median
P/E 16.07 15.73 14.62
P/S 1.58 2.18 2.97
P/B 2.03 2.03 0.94
Price to free cash flow n/m 24.80 8.93
EV/EBITDA 12.81 n/m 10.32
EV/Sales 1.52 (3.63) 5.72
Earnings yield 6.22% 6.36% 4.53%
Free cash flow yield (20.37%) 4.03% 4.65%

Profitability

Metric PFG STT Asset Management median
Gross margin 47.67% 65.45% 100.00%
Operating margin 11.87% 0.00% 33.03%
Net margin 9.93% 14.00% 13.53%
Free cash flow margin 30.92% 8.78% 12.44%
Return on equity 13.18% 13.29% 4.83%
Return on assets 0.46% 0.81% 1.57%
Return on invested capital 10.34% 0.00% 3.04%

Growth

Metric PFG STT Asset Management median
Revenue growth (TTM) 3.72% 2.00% 6.97%
EPS growth (last fiscal year) (21.41%) 14.49% —
Revenue growth, 5-year CAGR 1.17% 13.38% 12.13%
Net income growth, 5-year CAGR (3.22%) 3.78% 0.00%

Health

Metric PFG STT Asset Management median
Debt to equity 0.36 0.91 0.42
Current ratio 0.24 0.59 1.28
Net debt to EBITDA (0.28) 0.00 1.06

Dividend

Metric PFG STT Asset Management median
Dividend yield 3.35% 3.93% 6.92%
Payout ratio 0.39 0.34 0.77

Size

Metric PFG STT Asset Management median
Market cap 24.44b 49.75b 721.34m

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