Franklin Resources (NYSE:BEN) and Brightsphere Investment Group (NYSE:BSIG) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Franklin Resources pays an annual dividend of $1.04 per share and has a dividend yield of 3.0%. Brightsphere Investment Group does not pay a dividend. Franklin Resources pays out 32.6% of its earnings in the form of a dividend. Franklin Resources has raised its dividend for 37 consecutive years.
Valuation & Earnings
This table compares Franklin Resources and Brightsphere Investment Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Franklin Resources||$6.32 billion||2.83||$764.40 million||$3.19||11.03|
|Brightsphere Investment Group||$928.20 million||1.37||$136.40 million||$1.86||6.20|
Franklin Resources has higher revenue and earnings than Brightsphere Investment Group. Brightsphere Investment Group is trading at a lower price-to-earnings ratio than Franklin Resources, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
48.5% of Franklin Resources shares are held by institutional investors. Comparatively, 0.1% of Brightsphere Investment Group shares are held by institutional investors. 22.2% of Franklin Resources shares are held by company insiders. Comparatively, 0.6% of Brightsphere Investment Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Franklin Resources and Brightsphere Investment Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brightsphere Investment Group||14.88%||187.25%||12.31%|
This is a summary of current ratings for Franklin Resources and Brightsphere Investment Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brightsphere Investment Group||1||2||1||0||2.00|
Franklin Resources currently has a consensus target price of $30.52, indicating a potential downside of 13.28%. Brightsphere Investment Group has a consensus target price of $13.88, indicating a potential upside of 20.23%. Given Brightsphere Investment Group’s stronger consensus rating and higher possible upside, analysts clearly believe Brightsphere Investment Group is more favorable than Franklin Resources.
Franklin Resources beats Brightsphere Investment Group on 9 of the 15 factors compared between the two stocks.
Franklin Resources Company Profile
Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. The firm invests in the public equity, fixed income, and alternative markets. Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California with an additional office in Hyderabad, India.
Brightsphere Investment Group Company Profile
BrightSphere Investment Group plc is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as OM Asset Management plc. BrightSphere Investment Group plc operates as a former subsidiary of Old Mutual Global Investors.
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