Head to Head Contrast: TPG (NASDAQ:TPG) and BlackRock (NYSE:BLK)

BlackRock (NYSE:BLK) and TPG (NASDAQ:TPG) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Dividends

BlackRock pays an annual dividend of $20.84 per share and has a dividend yield of 2.0%. TPG pays an annual dividend of $1.80 per share and has a dividend yield of 2.8%. BlackRock pays out 53.6% of its earnings in the form of a dividend. TPG pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BlackRock has increased its dividend for 16 consecutive years.

Valuation & Earnings

This table compares BlackRock and TPG”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackRock	$20.41 billion	8.05	$6.37 billion	$38.89	27.24
TPG	$3.50 billion	6.98	$23.48 million	$0.09	718.22

BlackRock has higher revenue and earnings than TPG. BlackRock is trading at a lower price-to-earnings ratio than TPG, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BlackRock and TPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlackRock	26.64%	14.80%	5.04%
TPG	2.83%	25.79%	7.94%

Institutional and Insider Ownership

80.7% of BlackRock shares are owned by institutional investors. Comparatively, 94.0% of TPG shares are owned by institutional investors. 2.0% of BlackRock shares are owned by company insiders. Comparatively, 76.5% of TPG shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

BlackRock has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, TPG has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BlackRock and TPG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackRock	0	3	17	0	2.85
TPG	0	7	8	2	2.71

BlackRock presently has a consensus target price of $1,316.18, indicating a potential upside of 24.24%. TPG has a consensus target price of $66.67, indicating a potential upside of 3.14%. Given BlackRock’s stronger consensus rating and higher possible upside, equities research analysts plainly believe BlackRock is more favorable than TPG.

Summary

BlackRock beats TPG on 10 of the 18 factors compared between the two stocks.

About BlackRock

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.

About TPG

TPG Inc. operates as an alternative asset manager in the United States and internationally. The company offers investment management services to TPG Funds, limited partners, and other vehicles. It also offers monitoring services to portfolio companies; advisory, debt and equity arrangement, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. In addition, the company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is based in Fort Worth, Texas. The company operates as a subsidiary of TPG GP A, LLC.