Cohen & Steers (NYSE: CNS) and T. Rowe Price Group (NASDAQ:TROW) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Institutional and Insider Ownership
45.4% of Cohen & Steers shares are owned by institutional investors. Comparatively, 73.6% of T. Rowe Price Group shares are owned by institutional investors. 52.9% of Cohen & Steers shares are owned by company insiders. Comparatively, 3.6% of T. Rowe Price Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Cohen & Steers and T. Rowe Price Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cohen & Steers||$366.32 million||4.93||$150.50 million||$2.06||18.94|
|T. Rowe Price Group||$4.47 billion||4.58||$2.06 billion||$5.82||14.62|
T. Rowe Price Group has higher revenue and earnings than Cohen & Steers. T. Rowe Price Group is trading at a lower price-to-earnings ratio than Cohen & Steers, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Cohen & Steers and T. Rowe Price Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cohen & Steers||1||1||1||0||2.00|
|T. Rowe Price Group||3||6||1||0||1.80|
Cohen & Steers presently has a consensus target price of $45.50, suggesting a potential upside of 16.61%. T. Rowe Price Group has a consensus target price of $82.13, suggesting a potential downside of 3.50%. Given Cohen & Steers’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Cohen & Steers is more favorable than T. Rowe Price Group.
Volatility and Risk
Cohen & Steers has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, T. Rowe Price Group has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Cohen & Steers pays an annual dividend of $1.12 per share and has a dividend yield of 2.9%. T. Rowe Price Group pays an annual dividend of $2.28 per share and has a dividend yield of 2.7%. Cohen & Steers pays out 54.4% of its earnings in the form of a dividend. T. Rowe Price Group pays out 39.2% 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. Cohen & Steers has raised its dividend for 5 consecutive years and T. Rowe Price Group has raised its dividend for 30 consecutive years.
This table compares Cohen & Steers and T. Rowe Price Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cohen & Steers||26.34%||33.17%||26.42%|
|T. Rowe Price Group||32.64%||24.38%||18.94%|
Cohen & Steers beats T. Rowe Price Group on 9 of the 16 factors compared between the two stocks.
About Cohen & Steers
Cohen & Steers, Inc. (CNS) is a holding company. The Company is an investment manager with a focus on liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. The Company serves institutional and individual investors. The Company manages three types of investment vehicles: institutional accounts, open-end funds and closed-end funds. The Company also provides services in connection with model-based strategies (MBS) accounts. In addition, the Company provides several services in connection with assets held by unit investment trusts (UITs). As a portfolio consultant to a number of UITs, the Company constructs a portfolio of securities that suit the investment objective of the UIT. The Company also provides ongoing portfolio monitoring services and provides a license to certain firms to use its name in connection with certain of their investment products.
About T. Rowe Price Group
T. Rowe Price Group, Inc. is a financial services holding company. The Company provides global investment management services through its subsidiaries to investors across the world. The Company provides an array of Company sponsored the United States mutual funds, other sponsored pooled investment vehicles, sub advisory services, separate account management, recordkeeping, and related services to individuals, advisors, institutions, financial intermediaries and retirement plan sponsors. The Company distributes its products in countries located within three geographical regions: North America, Europe Middle East and Africa (EMEA), and Asia Pacific (APAC). It also offers specialized advisory services, including management of stable value investment contracts and a distribution management service for the disposition of equity securities its clients receive from third-party venture capital investment pools. As of December 31, 2016, it serviced clients in 45 countries across the world.
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