Raymond James Financial, Inc. (RJF) vs T. Rowe Price Group, Inc. (TROW)

Raymond James Financial, Inc. and T. Rowe Price Group, Inc. are both Asset Management companies. Raymond James Financial, Inc. is the larger, with a market value of $30.5B against $22.2B — 1.4× the size. T. Rowe Price Group, Inc. trades at the lower P/E: 10.6× against 13.7×. Raymond James Financial, Inc. grew revenue faster over the last twelve months: 8.04% against 6.97%. T. Rowe Price Group, Inc. has the higher net margin (28.6% vs 13.5%) and the lower return on invested capital (18.4% vs 75.2%). Both pay a dividend; T. Rowe Price Group, Inc. yields more (4.58% vs 1.62%). Across the 22 metrics below, T. Rowe Price Group, Inc. leads on 13 and Raymond James Financial, Inc. on 9.

Valuation

Metric RJF TROW Asset Management median
P/E 13.66 10.57 14.62
P/S 1.83 2.97 2.97
P/B 2.43 2.02 0.94
Price to free cash flow 21.51 13.49 8.93
EV/EBITDA 4.55 6.68 10.32
EV/Sales 1.30 2.55 5.72
Earnings yield 7.32% 9.46% 4.53%
Free cash flow yield 4.65% 7.41% 4.65%

Profitability

Metric RJF TROW Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 27.47% 30.76% 33.03%
Net margin 13.53% 28.59% 13.53%
Free cash flow margin 8.49% 22.05% 12.44%
Return on equity 18.41% 19.85% 4.83%
Return on assets 2.57% 14.62% 1.57%
Return on invested capital 75.18% 18.41% 3.04%

Growth

Metric RJF TROW Asset Management median
Revenue growth (TTM) 8.04% 6.97% 6.97%
EPS growth (last fiscal year) 6.19% 0.98% —
Revenue growth, 5-year CAGR 14.27% 3.34% 12.13%
Net income growth, 5-year CAGR 21.06% (2.47%) 0.00%

Health

Metric RJF TROW Asset Management median
Debt to equity 0.43 0.00 0.42
Current ratio 1.06 4.04 1.28
Net debt to EBITDA (2.09) (1.21) 1.06

Dividend

Metric RJF TROW Asset Management median
Dividend yield 1.62% 4.58% 6.92%
Payout ratio 0.20 0.72 0.77

Size

Metric RJF TROW Asset Management median
Market cap 30.54b 22.24b 721.34m

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