T. Rowe Price Group (NASDAQ:TROW – Get Free Report) and Noah (NYSE:NOAH – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Dividends
T. Rowe Price Group pays an annual dividend of $5.20 per share and has a dividend yield of 5.1%. Noah pays an annual dividend of $0.63 per share and has a dividend yield of 8.6%. T. Rowe Price Group pays out 52.2% of its earnings in the form of a dividend. Noah pays out 51.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. T. Rowe Price Group has raised its dividend for 39 consecutive years. Noah is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
73.4% of T. Rowe Price Group shares are owned by institutional investors. Comparatively, 42.7% of Noah shares are owned by institutional investors. 1.6% of T. Rowe Price Group shares are owned by company insiders. Comparatively, 47.2% of Noah shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares T. Rowe Price Group and Noah”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 | $7.31 billion | 2.96 | $2.09 billion | $9.97 | 10.17 |
| Noah | $373.26 million | 1.34 | $79.92 million | $1.23 | 5.96 |
T. Rowe Price Group has higher revenue and earnings than Noah. Noah is trading at a lower price-to-earnings ratio than T. Rowe Price Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for T. Rowe Price Group and Noah, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| T. Rowe Price Group | 3 | 10 | 1 | 0 | 1.86 |
| Noah | 0 | 4 | 0 | 0 | 2.00 |
T. Rowe Price Group currently has a consensus price target of $104.08, indicating a potential upside of 2.67%. Noah has a consensus price target of $9.85, indicating a potential upside of 34.29%. Given Noah’s stronger consensus rating and higher probable upside, analysts clearly believe Noah is more favorable than T. Rowe Price Group.
Volatility & Risk
T. Rowe Price Group has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Noah has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
Profitability
This table compares T. Rowe Price Group and Noah’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| T. Rowe Price Group | 29.26% | 20.91% | 15.68% |
| Noah | 22.57% | 6.37% | 5.38% |
Summary
T. Rowe Price Group beats Noah on 12 of the 17 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 Noah
Noah Holdings Limited, together with its subsidiaries, operates as a wealth and asset management service provider with the focus on investment and asset allocation services for high net worth individuals and enterprises in Mainland of China, Hong Kong, and internationally. It operates through three segments: Wealth Management, Asset Management, and Other Services. The company offers investment products, including domestic and overseas mutual fund products, private secondary products, and other products; customized value-added financial services, such as investor education and trust services, as well as insurance brokerage services; and insurance products. It also provides onshore and offshore private equity, real estate, public securities, multi-strategy, and other investment products, as well as lending services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.
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