Reviewing Noah (NYSE:NOAH) & T. Rowe Price Group (NASDAQ:TROW)

Noah (NYSE:NOAH) and T. Rowe Price Group (NASDAQ:TROW) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Volatility & Risk

Noah has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, T. Rowe Price Group has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Valuation and Earnings

This table compares Noah and T. Rowe Price Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Noah	$373.26 million	1.29	$79.92 million	$1.23	5.73
T. Rowe Price Group	$7.31 billion	2.92	$2.09 billion	$9.97	10.04

T. Rowe Price Group has higher revenue and earnings than Noah. Noah is trading at a lower price-to-earnings ratio than T. Rowe Price Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Noah and T. Rowe Price Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Noah	0	4	0	0	2.00
T. Rowe Price Group	3	10	1	0	1.86

Noah presently has a consensus price target of $9.85, suggesting a potential upside of 39.72%. T. Rowe Price Group has a consensus price target of $104.08, suggesting a potential upside of 3.97%. Given Noah’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Noah is more favorable than T. Rowe Price Group.

Dividends

Noah pays an annual dividend of $0.63 per share and has a dividend yield of 8.9%. T. Rowe Price Group pays an annual dividend of $5.20 per share and has a dividend yield of 5.2%. Noah pays out 51.2% of its earnings in the form of a dividend. T. Rowe Price Group pays out 52.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. T. Rowe Price Group has increased its dividend for 39 consecutive years. Noah is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

42.7% of Noah shares are owned by institutional investors. Comparatively, 73.4% of T. Rowe Price Group shares are owned by institutional investors. 47.2% of Noah 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 company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Noah	22.57%	6.37%	5.38%
T. Rowe Price Group	29.26%	20.91%	15.68%

Summary

T. Rowe Price Group beats Noah on 12 of the 17 factors compared between the two stocks.

About Noah

Noah Holdings Limited, together with its subsidiaries, operates as a wealth and asset management service provider with the focus on investment and asset allocation services for high net worth individuals and enterprises in Mainland of China, Hong Kong, and internationally. It operates through three segments: Wealth Management, Asset Management, and Other Services. The company offers investment products, including domestic and overseas mutual fund products, private secondary products, and other products; customized value-added financial services, such as investor education and trust services, as well as insurance brokerage services; and insurance products. It also provides onshore and offshore private equity, real estate, public securities, multi-strategy, and other investment products, as well as lending services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

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.