Reviewing ArrowMark Financial (NASDAQ:BANX) & T. Rowe Price Group (NASDAQ:TROW)

T. Rowe Price Group (NASDAQ:TROW) and ArrowMark Financial (NASDAQ:BANX) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Dividends

T. Rowe Price Group pays an annual dividend of $5.20 per share and has a dividend yield of 5.2%. ArrowMark Financial pays an annual dividend of $1.80 per share and has a dividend yield of 9.1%. T. Rowe Price Group pays out 56.2% of its earnings in the form of a dividend. T. Rowe Price Group has increased its dividend for 39 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for T. Rowe Price Group and ArrowMark Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T. Rowe Price Group	5	10	0	0	1.67
ArrowMark Financial	0	0	0	0	0.00

T. Rowe Price Group currently has a consensus target price of $96.85, indicating a potential downside of 2.31%. Given T. Rowe Price Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe T. Rowe Price Group is more favorable than ArrowMark Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
T. Rowe Price Group	28.53%	20.29%	15.29%
ArrowMark Financial	N/A	N/A	N/A

Earnings and Valuation

This table compares T. Rowe Price Group and ArrowMark Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T. Rowe Price Group	$7.31 billion	2.95	$2.09 billion	$9.25	10.72
ArrowMark Financial	N/A	N/A	N/A	N/A	N/A

T. Rowe Price Group has higher revenue and earnings than ArrowMark Financial.

Risk and Volatility

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, ArrowMark Financial has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Insider and Institutional Ownership

73.4% of T. Rowe Price Group shares are held by institutional investors. Comparatively, 24.9% of ArrowMark Financial shares are held by institutional investors. 1.6% of T. Rowe Price Group shares are held by insiders. Comparatively, 0.7% of ArrowMark Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

T. Rowe Price Group beats ArrowMark Financial on 10 of the 12 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 ArrowMark Financial

ArrowMark Financial Corp. is a closed-end balanced mutual fund launched and managed by ArrowMark Asset Management, LLC. It invests in public equity and fixed income markets of global region. For its equity portion, the fund invests in stocks of companies operating across financials, banks sectors. It invests in growth and value stocks of companies across diversified market capitalization. For its fixed income portion, the fund invests in debt and subordinated debt, structured notes and securities, regulatory capital securities which are rated below investment grade. ArrowMark Financial Corp. was formed on February 7, 2013 and is domiciled in the United States.