Victory Capital (NASDAQ:VCTR – Get Free Report) and BlackRock (NYSE:BLK – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.
Analyst Recommendations
This is a summary of recent ratings and target prices for Victory Capital and BlackRock, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Victory Capital | 0 | 5 | 2 | 0 | 2.29 |
| BlackRock | 0 | 3 | 14 | 1 | 2.89 |
Victory Capital presently has a consensus price target of $113.33, indicating a potential downside of 0.45%. BlackRock has a consensus price target of $1,308.53, indicating a potential upside of 21.13%. Given BlackRock’s stronger consensus rating and higher possible upside, analysts plainly believe BlackRock is more favorable than Victory Capital.
Risk and Volatility
Profitability
This table compares Victory Capital and BlackRock’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Victory Capital | 29.57% | 24.17% | 13.77% |
| BlackRock | 24.09% | 14.90% | 4.97% |
Valuation & Earnings
This table compares Victory Capital and BlackRock”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Victory Capital | $1.31 billion | 5.36 | $330.06 million | $5.44 | 20.93 |
| BlackRock | $24.22 billion | 6.91 | $5.55 billion | $41.84 | 25.82 |
BlackRock has higher revenue and earnings than Victory Capital. Victory Capital is trading at a lower price-to-earnings ratio than BlackRock, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
87.7% of Victory Capital shares are held by institutional investors. Comparatively, 80.7% of BlackRock shares are held by institutional investors. 9.5% of Victory Capital shares are held by company insiders. Comparatively, 1.9% of BlackRock shares are held 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.
Dividends
Victory Capital pays an annual dividend of $2.00 per share and has a dividend yield of 1.8%. BlackRock pays an annual dividend of $22.92 per share and has a dividend yield of 2.1%. Victory Capital pays out 36.8% of its earnings in the form of a dividend. BlackRock pays out 54.8% 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. Victory Capital has raised its dividend for 6 consecutive years and BlackRock has raised its dividend for 16 consecutive years. BlackRock is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
BlackRock beats Victory Capital on 12 of the 18 factors compared between the two stocks.
About Victory Capital
Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company in the United States and internationally. It offers investment advisory, fund administration, fund compliance, fund transfer agent, fund distribution, and other management services. The company provides specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors. Its investment products include actively and passively managed mutual funds; rules-based and active exchange traded funds; institutional separate accounts; variable insurance products; alternative investments; and private closed-end funds; and a 529 Education Savings Plan. The company also offers strategies through third-party investment products, including mutual funds, third-party ETF model strategies, retail separately managed accounts, unified managed accounts through wrap account programs, Collective Investment Trusts, and undertakings for the collective investment in transferable securities. Victory Capital Holdings, Inc. was incorporated in 2013 and is based in San Antonio, Texas.
About BlackRock
BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.
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