Principal Financial Group, Inc. (PFG) vs T. Rowe Price Group, Inc. (TROW)

Principal Financial Group, Inc. and T. Rowe Price Group, Inc. are both Asset Management companies. Principal Financial Group, Inc. and T. Rowe Price Group, Inc. are of similar size ($24.0B and $23.2B). T. Rowe Price Group, Inc. trades at the lower P/E: 11.0× against 12.6×. T. Rowe Price Group, Inc. grew revenue faster over the last twelve months: 6.91% against 5.24%. T. Rowe Price Group, Inc. has the higher net margin (28.1% vs 11.9%) and the higher return on invested capital (19.8% vs 12.9%). Both pay a dividend; T. Rowe Price Group, Inc. yields more (4.75% vs 2.88%). Across the 20 metrics below, T. Rowe Price Group, Inc. leads on 18 and Principal Financial Group, Inc. on 2.

Valuation

Metric PFG TROW Asset Management median
P/E 12.59 11.01 13.38
P/S 1.45 3.01 2.99
P/B 2.04 2.01 0.91
Price to free cash flow n/m 14.53 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.94% 9.08% 4.67%
Free cash flow yield (18.82%) 6.88% 4.85%

Profitability

Metric PFG TROW Asset Management median
Gross margin 48.48% 100.00% 100.00%
Operating margin 14.75% 31.96% 27.27%
Net margin 11.89% 28.09% 11.89%
Free cash flow margin 32.19% 20.75% 5.96%
Return on equity 16.78% 19.20% 4.57%
Return on assets 0.59% 14.02% 1.40%
Return on invested capital 12.88% 19.77% 2.12%

Growth

Metric PFG TROW Asset Management median
Revenue growth (TTM) 5.24% 6.91% 7.26%
EPS growth (last fiscal year) (21.41%) 0.98% (5.64%)
Revenue growth, 5-year CAGR 1.17% 3.34% 11.84%
Net income growth, 5-year CAGR (3.22%) (2.47%) 0.00%

Health

Metric PFG TROW Asset Management median
Debt to equity 0.38 0.00 0.40
Current ratio 0.24 3.61 1.23
Net debt to EBITDA (0.28) (1.21) 1.06

Dividend

Metric PFG TROW Asset Management median
Dividend yield 2.88% 4.75% 6.43%
Payout ratio 0.37 0.52 0.91

Size

Metric PFG TROW Asset Management median
Market cap 23.96b 23.19b 692.54m

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