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 $45.0B against $24.0B — 1.9× the size. Principal Financial Group, Inc. trades at the lower P/E: 12.6× against 13.3×. Principal Financial Group, Inc. grew revenue faster over the last twelve months: 5.24% against 2.76%. State Street Corporation has the higher net margin (14.8% vs 11.9%) and the lower return on invested capital (0.00% vs 12.9%). Both pay a dividend; Principal Financial Group, Inc. yields more (2.88% vs 2.07%). Across the 20 metrics below, Principal Financial Group, Inc. leads on 11 and State Street Corporation on 9.

Valuation

Metric PFG STT Asset Management median
P/E 12.59 13.32 13.38
P/S 1.45 1.95 2.99
P/B 2.04 1.85 0.91
Price to free cash flow n/m n/m 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.94% 7.51% 4.67%
Free cash flow yield (18.82%) (8.20%) 4.85%

Profitability

Metric PFG STT Asset Management median
Gross margin 48.48% 66.55% 100.00%
Operating margin 14.75% 0.00% 27.27%
Net margin 11.89% 14.79% 11.89%
Free cash flow margin 32.19% (16.02%) 5.96%
Return on equity 16.78% 14.15% 4.57%
Return on assets 0.59% 0.89% 1.40%
Return on invested capital 12.88% 0.00% 2.12%

Growth

Metric PFG STT Asset Management median
Revenue growth (TTM) 5.24% 2.76% 7.26%
EPS growth (last fiscal year) (21.41%) 14.49% (5.64%)
Revenue growth, 5-year CAGR 1.17% 13.38% 11.84%
Net income growth, 5-year CAGR (3.22%) 3.78% 0.00%

Health

Metric PFG STT Asset Management median
Debt to equity 0.38 0.88 0.40
Current ratio 0.24 0.59 1.23
Net debt to EBITDA (0.28) 0.00 1.06

Dividend

Metric PFG STT Asset Management median
Dividend yield 2.88% 2.07% 6.43%
Payout ratio 0.37 0.28 0.91

Size

Metric PFG STT Asset Management median
Market cap 23.96b 44.96b 692.54m

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