Head-To-Head Comparison: ArrowMark Financial (NASDAQ:BANX) versus T. Rowe Price Group (NASDAQ:TROW)

ArrowMark Financial (NASDAQ:BANX) and T. Rowe Price Group (NASDAQ:TROW) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Profitability

This table compares ArrowMark Financial and T. Rowe Price Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ArrowMark Financial	N/A	N/A	N/A
T. Rowe Price Group	28.53%	20.29%	15.29%

Valuation & Earnings

This table compares ArrowMark Financial and T. Rowe Price Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ArrowMark Financial	N/A	N/A	N/A	N/A	N/A
T. Rowe Price Group	$7.31 billion	2.95	$2.09 billion	$9.25	10.72

T. Rowe Price Group has higher revenue and earnings than ArrowMark Financial.

Dividends

ArrowMark Financial pays an annual dividend of $1.80 per share and has a dividend yield of 9.1%. T. Rowe Price Group pays an annual dividend of $5.20 per share and has a dividend yield of 5.2%. T. Rowe Price Group pays out 56.2% of its earnings in the form of a dividend. T. Rowe Price Group has increased its dividend for 39 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for ArrowMark Financial and T. Rowe Price Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ArrowMark Financial	0	0	0	0	0.00
T. Rowe Price Group	5	10	0	0	1.67

T. Rowe Price Group has a consensus price target of $96.85, suggesting a potential downside of 2.31%. Given T. Rowe Price Group’s stronger consensus rating and higher possible upside, analysts plainly believe T. Rowe Price Group is more favorable than ArrowMark Financial.

Institutional and Insider Ownership

24.9% of ArrowMark Financial shares are owned by institutional investors. Comparatively, 73.4% of T. Rowe Price Group shares are owned by institutional investors. 0.7% of ArrowMark Financial shares are owned by company insiders. Comparatively, 1.6% of T. Rowe Price Group shares are owned 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.

Risk and Volatility

ArrowMark Financial has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, T. Rowe Price Group has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Summary

T. Rowe Price Group beats ArrowMark Financial on 10 of the 12 factors compared between the two stocks.

About ArrowMark Financial

ArrowMark Financial Corp. is a closed-end balanced mutual fund launched and managed by ArrowMark Asset Management, LLC. It invests in public equity and fixed income markets of global region. For its equity portion, the fund invests in stocks of companies operating across financials, banks sectors. It invests in growth and value stocks of companies across diversified market capitalization. For its fixed income portion, the fund invests in debt and subordinated debt, structured notes and securities, regulatory capital securities which are rated below investment grade. ArrowMark Financial Corp. was formed on February 7, 2013 and is domiciled in the United States.

About T. Rowe Price Group

T. Rowe Price Group, Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe. It employs fundamental and quantitative analysis with a bottom-up approach. The firm utilizes in-house and external research to make its investments. It employs socially responsible investing with a focus on environmental, social, and governance issues. It makes investment in late-stage venture capital transactions and usually invests between $3 million and $5 million. The firm was previously known as T. Rowe Group, Inc. and T. Rowe Price Associates, Inc. T. Rowe Price Group, Inc. was founded in 1937 and is based in Baltimore, Maryland, with additional offices in Colorado Springs, Colorado; Owings Mills, Maryland; San Francisco, California; New York, New York; Philadelphia, Pennsylvania; Tampa, Florida; Toronto, Ontario; Hellerup, Denmark; Amsterdam, The Netherlands; Luxembourg, Grand Duchy of Luxembourg; Zurich, Switzerland; Dubai, United Arab Emirates; London, United Kingdom; Sydney, New South Wales; Hong Kong; Tokyo, Japan; Singapore; Frankfurt, Shanghai, China; Germany, Madrid, Spain, Milan, Italy, Stockholm, Sweden, Melbourne, Australia, Amsterdam, Netherlands and Washington, DC.