T. Rowe Price Group (NASDAQ:TROW) & Invesco (NYSE:IVZ) Head to Head Contrast

T. Rowe Price Group (NASDAQ:TROW) and Invesco (NYSE:IVZ) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for T. Rowe Price Group and Invesco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T. Rowe Price Group	4	11	1	0	1.81
Invesco	0	13	4	1	2.33

T. Rowe Price Group presently has a consensus target price of $106.15, suggesting a potential upside of 4.66%. Invesco has a consensus target price of $21.72, suggesting a potential downside of 3.40%. Given T. Rowe Price Group’s higher probable upside, research analysts clearly believe T. Rowe Price Group is more favorable than Invesco.

Dividends

T. Rowe Price Group pays an annual dividend of $5.08 per share and has a dividend yield of 5.0%. Invesco pays an annual dividend of $0.84 per share and has a dividend yield of 3.7%. T. Rowe Price Group pays out 56.8% of its earnings in the form of a dividend. Invesco pays out 90.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. T. Rowe Price Group has raised its dividend for 39 consecutive years and Invesco has raised its dividend for 5 consecutive years. T. Rowe Price Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

73.4% of T. Rowe Price Group shares are owned by institutional investors. Comparatively, 66.1% of Invesco shares are owned by institutional investors. 1.6% of T. Rowe Price Group shares are owned by insiders. Comparatively, 1.2% of Invesco shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares T. Rowe Price Group and Invesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T. Rowe Price Group	28.72%	19.77%	15.04%
Invesco	10.68%	8.60%	3.49%

Valuation and Earnings

This table compares T. Rowe Price Group and Invesco”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T. Rowe Price Group	$7.09 billion	3.14	$2.10 billion	$8.95	11.33
Invesco	$6.07 billion	1.65	$774.80 million	$0.93	24.17

T. Rowe Price Group has higher revenue and earnings than Invesco. T. Rowe Price Group is trading at a lower price-to-earnings ratio than Invesco, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

T. Rowe Price Group has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Invesco has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Summary

T. Rowe Price Group beats Invesco on 13 of the 18 factors compared between the two stocks.

About T. Rowe Price Group

T. Rowe Price Group, Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe. It employs fundamental and quantitative analysis with a bottom-up approach. The firm utilizes in-house and external research to make its investments. It employs socially responsible investing with a focus on environmental, social, and governance issues. It makes investment in late-stage venture capital transactions and usually invests between $3 million and $5 million. The firm was previously known as T. Rowe Group, Inc. and T. Rowe Price Associates, Inc. T. Rowe Price Group, Inc. was founded in 1937 and is based in Baltimore, Maryland, with additional offices in Colorado Springs, Colorado; Owings Mills, Maryland; San Francisco, California; New York, New York; Philadelphia, Pennsylvania; Tampa, Florida; Toronto, Ontario; Hellerup, Denmark; Amsterdam, The Netherlands; Luxembourg, Grand Duchy of Luxembourg; Zurich, Switzerland; Dubai, United Arab Emirates; London, United Kingdom; Sydney, New South Wales; Hong Kong; Tokyo, Japan; Singapore; Frankfurt, Shanghai, China; Germany, Madrid, Spain, Milan, Italy, Stockholm, Sweden, Melbourne, Australia, Amsterdam, Netherlands and Washington, DC.

About Invesco

Invesco Ltd. is a publicly owned investment manager. The firm provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds. It manages separate client-focused equity and fixed income portfolios. The firm also launches equity, fixed income, commodity, multi-asset, and balanced mutual funds for its clients. It launches equity, fixed income, multi-asset, and balanced exchange-traded funds. The firm also launches and manages private funds. It invests in the public equity and fixed income markets across the globe. The firm also invests in alternative markets, such as commodities and currencies. For the equity portion of its portfolio, it invests in growth and value stocks of large-cap, mid-cap, and small-cap companies. For the fixed income portion of its portfolio, the firm invests in convertibles, government bonds, municipal bonds, treasury securities, and cash. It also invests in short term and intermediate term bonds, investment grade and high yield bonds, taxable and tax-free bonds, senior secured loans, and structured securities such as asset-backed securities, mortgage-backed securities, and commercial mortgage-backed securities. The firm employs absolute return, global macro, and long/short strategies. It employs quantitative analysis to make its investments. The firm was formerly known as Invesco Plc, AMVESCAP plc, Amvesco plc, Invesco PLC, Invesco MIM, and H. Lotery & Co. Ltd. Invesco Ltd. was founded in 1935 and is based in Atlanta, Georgia with an additional office in Hamilton, Bermuda.