T. Rowe Price Group (NASDAQ: TROW) and America First Multifamily Investors (NASDAQ:ATAX) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
This table compares T. Rowe Price Group and America First Multifamily Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|T. Rowe Price Group||31.07%||25.30%||19.64%|
|America First Multifamily Investors||37.79%||10.06%||2.93%|
This is a breakdown of current recommendations and price targets for T. Rowe Price Group and America First Multifamily Investors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|T. Rowe Price Group||1||6||3||0||2.20|
|America First Multifamily Investors||0||1||0||0||2.00|
T. Rowe Price Group presently has a consensus price target of $110.00, suggesting a potential upside of 5.11%. America First Multifamily Investors has a consensus price target of $6.00, suggesting a potential downside of 3.23%. Given T. Rowe Price Group’s stronger consensus rating and higher possible upside, analysts plainly believe T. Rowe Price Group is more favorable than America First Multifamily Investors.
Volatility & Risk
T. Rowe Price Group has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, America First Multifamily Investors has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.
Institutional & Insider Ownership
72.8% of T. Rowe Price Group shares are owned by institutional investors. Comparatively, 6.6% of America First Multifamily Investors shares are owned by institutional investors. 3.6% of T. Rowe Price Group shares are owned by company insiders. Comparatively, 1.3% of America First Multifamily Investors shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares T. Rowe Price Group and America First Multifamily Investors’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|T. Rowe Price Group||$4.79 billion||5.34||$1.50 billion||$5.97||17.53|
|America First Multifamily Investors||$70.38 million||5.32||$30.59 million||$0.44||14.09|
T. Rowe Price Group has higher revenue and earnings than America First Multifamily Investors. America First Multifamily Investors 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.
T. Rowe Price Group pays an annual dividend of $2.80 per share and has a dividend yield of 2.7%. America First Multifamily Investors pays an annual dividend of $0.50 per share and has a dividend yield of 8.1%. T. Rowe Price Group pays out 46.9% of its earnings in the form of a dividend. America First Multifamily Investors pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. T. Rowe Price Group has increased its dividend for 31 consecutive years.
T. Rowe Price Group beats America First Multifamily Investors on 15 of the 17 factors compared between the two stocks.
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.
About America First Multifamily Investors
America First Multifamily Investors, L.P. is engaged in acquiring, holding, selling and dealing with a portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for multifamily and student housing (collectively Residential Properties) and commercial properties. Its segments are Mortgage Revenue Bond Investments, MF Properties, Public Housing Capital Fund Trusts and mortgage-backed securities (MBS) Investments. Its Mortgage Revenue Bond Investments segment consists of its portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for the residential properties and a commercial property. The MF Properties segment consists of indirect equity interests in multifamily, student housing, and senior citizen residential properties, which are not financed by mortgage revenue bonds held by the Company, but which it intends to finance by such bonds through a restructuring.
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