Head-To-Head Analysis: T. Rowe Price Group (NASDAQ:TROW) and Schroders (OTCMKTS:SHNWF)

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

Insider & Institutional Ownership

73.4% of T. Rowe Price Group shares are held by institutional investors. 2.0% of T. Rowe Price Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T. Rowe Price Group	4	12	0	0	1.75
Schroders	1	3	1	0	2.00

T. Rowe Price Group presently has a consensus price target of $101.69, indicating a potential upside of 17.99%. Given T. Rowe Price Group’s higher possible upside, equities research analysts clearly believe T. Rowe Price Group is more favorable than Schroders.

Earnings and Valuation

This table compares T. Rowe Price Group and Schroders”s gross 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	2.56	$2.09 billion	$9.25	9.32
Schroders	$4.29 billion	2.81	$532.88 million	N/A	N/A

T. Rowe Price Group has higher revenue and earnings than Schroders.

Volatility and Risk

T. Rowe Price Group has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Schroders has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares T. Rowe Price Group and Schroders’ 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%
Schroders	N/A	N/A	N/A

Summary

T. Rowe Price Group beats Schroders on 9 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 Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm’s alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. The company was formerly known as New Schroders plc and changed its name to Schroders plc in April 2000. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.