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 $46.0B against $23.3B — 2.0× the size. State Street Corporation trades at the lower P/E: 13.1× against 15.2×. Principal Financial Group, Inc. grew revenue faster over the last twelve months: 3.72% against 2.76%. State Street Corporation has the higher net margin (14.8% vs 9.93%) and the lower return on invested capital (0.00% vs 10.3%). Both pay a dividend; Principal Financial Group, Inc. yields more (2.99% vs 2.08%). Across the 20 metrics below, State Street Corporation leads on 11 and Principal Financial Group, Inc. on 9.

Valuation

Metric PFG STT Asset Management median
P/E 15.24 13.07 13.99
P/S 1.50 1.95 2.76
P/B 1.93 1.96 0.85
Price to free cash flow n/m 22.50 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 6.56% 7.65% 4.72%
Free cash flow yield (21.48%) 4.44% 4.44%

Profitability

Metric PFG STT Asset Management median
Gross margin 47.67% 66.55% 100.00%
Operating margin 11.87% 0.00% 33.42%
Net margin 9.93% 14.79% 13.37%
Free cash flow margin 30.92% 0.00% 12.36%
Return on equity 13.18% 14.61% 4.79%
Return on assets 0.46% 0.93% 1.55%
Return on invested capital 10.34% 0.00% 2.97%

Growth

Metric PFG STT Asset Management median
Revenue growth (TTM) 3.72% 2.76% 7.42%
EPS growth (last fiscal year) (21.41%) 14.49% (6.67%)
Revenue growth, 5-year CAGR 1.17% 13.38% 12.51%
Net income growth, 5-year CAGR (3.22%) 3.78% 0.00%

Health

Metric PFG STT Asset Management median
Debt to equity 0.36 0.93 0.44
Current ratio 0.24 0.57 1.30
Net debt to EBITDA (0.28) 0.00 1.02

Dividend

Metric PFG STT Asset Management median
Dividend yield 2.99% 2.08% 6.60%
Payout ratio 0.46 0.28 0.94

Size

Metric PFG STT Asset Management median
Market cap 23.33b 46.04b 694.86m

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