Critical Comparison: BlackRock (BLK) vs. The Competition
BlackRock (NYSE: BLK) is one of 53 public companies in the “Investment Management & Fund Operators” industry, but how does it compare to its peers? We will compare BlackRock to related companies based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.
This is a breakdown of current recommendations for BlackRock and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BlackRock presently has a consensus target price of $448.00, indicating a potential upside of 4.32%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 6.34%. Given BlackRock’s peers higher possible upside, analysts clearly believe BlackRock has less favorable growth aspects than its peers.
This table compares BlackRock and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
82.5% of BlackRock shares are held by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 1.9% of BlackRock shares are held by company insiders. Comparatively, 10.4% of shares of all “Investment Management & Fund Operators” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
BlackRock pays an annual dividend of $10.00 per share and has a dividend yield of 2.3%. BlackRock pays out 48.0% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.8% and pay out 49.4% of their earnings in the form of a dividend. BlackRock has raised its dividend for 7 consecutive years.
Valuation & Earnings
This table compares BlackRock and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|BlackRock||$11.52 billion||$5.06 billion||20.61|
|BlackRock Competitors||$3.00 billion||$961.92 million||6.61|
BlackRock has higher revenue and earnings than its peers. BlackRock is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Volatility and Risk
BlackRock has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, BlackRock’s peers have a beta of 1.23, indicating that their average stock price is 23% more volatile than the S&P 500.
BlackRock beats its peers on 10 of the 15 factors compared.
BlackRock, Inc. (BlackRock) is an investment management company. BlackRock provides a range of investment and risk management services to institutional and retail clients worldwide. Its diverse platform of active (alpha) and index (beta) investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients. Its product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Its products are offered directly and through intermediaries in a range of vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds (ETFs), separate accounts, collective investment funds and other pooled investment vehicles. It offers its Aladdin investment system, as well as risk management, outsourcing, advisory and technology services, to institutional investors and wealth management intermediaries under the BlackRock Solutions name.
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