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 ($24.4B and $22.2B). T. Rowe Price Group, Inc. trades at the lower P/E: 10.6× against 16.1×. T. Rowe Price Group, Inc. grew revenue faster over the last twelve months: 6.97% against 3.72%. T. Rowe Price Group, Inc. has the higher net margin (28.6% vs 9.93%) and the higher return on invested capital (18.4% vs 10.3%). Both pay a dividend; T. Rowe Price Group, Inc. yields more (4.58% vs 3.35%). Across the 22 metrics below, T. Rowe Price Group, Inc. leads on 19 and Principal Financial Group, Inc. on 3.

Valuation

Metric PFG TROW Asset Management median
P/E 16.07 10.57 14.62
P/S 1.58 2.97 2.97
P/B 2.03 2.02 0.94
Price to free cash flow n/m 13.49 8.93
EV/EBITDA 12.81 6.68 10.32
EV/Sales 1.52 2.55 5.72
Earnings yield 6.22% 9.46% 4.53%
Free cash flow yield (20.37%) 7.41% 4.65%

Profitability

Metric PFG TROW Asset Management median
Gross margin 47.67% 100.00% 100.00%
Operating margin 11.87% 30.76% 33.03%
Net margin 9.93% 28.59% 13.53%
Free cash flow margin 30.92% 22.05% 12.44%
Return on equity 13.18% 19.85% 4.83%
Return on assets 0.46% 14.62% 1.57%
Return on invested capital 10.34% 18.41% 3.04%

Growth

Metric PFG TROW Asset Management median
Revenue growth (TTM) 3.72% 6.97% 6.97%
EPS growth (last fiscal year) (21.41%) 0.98% —
Revenue growth, 5-year CAGR 1.17% 3.34% 12.13%
Net income growth, 5-year CAGR (3.22%) (2.47%) 0.00%

Health

Metric PFG TROW Asset Management median
Debt to equity 0.36 0.00 0.42
Current ratio 0.24 4.04 1.28
Net debt to EBITDA (0.28) (1.21) 1.06

Dividend

Metric PFG TROW Asset Management median
Dividend yield 3.35% 4.58% 6.92%
Payout ratio 0.39 0.72 0.77

Size

Metric PFG TROW Asset Management median
Market cap 24.44b 22.24b 721.34m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack