BlackRock (NYSE: BLK) is one of 55 public companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its rivals? We will compare BlackRock to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, earnings, institutional ownership and dividends.

Dividends

BlackRock pays an annual dividend of $10.00 per share and has a dividend yield of 2.2%. 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 2.6% and pay out 49.6% of their earnings in the form of a dividend. BlackRock has increased its dividend for 7 consecutive years.

Earnings and Valuation

This table compares BlackRock and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
BlackRock $11.52 billion $5.06 billion 22.29
BlackRock Competitors $2.88 billion $924.32 million 7.22

BlackRock has higher revenue and earnings than its rivals. BlackRock is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares BlackRock and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackRock 29.92% 11.74% 1.53%
BlackRock Competitors -44.72% 7.65% 5.15%

Insider and Institutional Ownership

82.5% of BlackRock shares are held by institutional investors. Comparatively, 62.1% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 1.9% of BlackRock shares are held by insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

BlackRock has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, BlackRock’s rivals have a beta of 1.23, suggesting that their average stock price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BlackRock and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackRock 0 3 9 0 2.75
BlackRock Competitors 275 1621 1748 57 2.43

BlackRock currently has a consensus price target of $459.09, suggesting a potential downside of 1.15%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 4.43%. Given BlackRock’s rivals higher possible upside, analysts plainly believe BlackRock has less favorable growth aspects than its rivals.

Summary

BlackRock beats its rivals on 10 of the 15 factors compared.

About BlackRock

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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