Ridgepost Capital (NYSE:RPC) versus T. Rowe Price Group (NASDAQ:TROW) Head-To-Head Review

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

Risk & Volatility

T. Rowe Price Group has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Ridgepost Capital has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T. Rowe Price Group	$7.31 billion	3.14	$2.09 billion	$9.97	10.79
Ridgepost Capital	$297.35 million	2.93	$19.50 million	$0.25	31.63

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
T. Rowe Price Group	29.26%	20.91%	15.68%
Ridgepost Capital	9.03%	21.02%	9.21%

Analyst Recommendations

This is a summary of current ratings and target prices for T. Rowe Price Group and Ridgepost Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T. Rowe Price Group	4	9	1	0	1.79
Ridgepost Capital	0	2	2	0	2.50

T. Rowe Price Group presently has a consensus target price of $106.15, suggesting a potential downside of 1.30%. Ridgepost Capital has a consensus target price of $13.00, suggesting a potential upside of 64.39%. Given Ridgepost Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Ridgepost Capital is more favorable than T. Rowe Price Group.

Dividends

T. Rowe Price Group pays an annual dividend of $5.20 per share and has a dividend yield of 4.8%. Ridgepost Capital pays an annual dividend of $0.16 per share and has a dividend yield of 2.0%. T. Rowe Price Group pays out 52.2% of its earnings in the form of a dividend. Ridgepost Capital pays out 64.0% 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. T. Rowe Price Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

73.4% of T. Rowe Price Group shares are owned by institutional investors. Comparatively, 48.0% of Ridgepost Capital shares are owned by institutional investors. 1.6% of T. Rowe Price Group shares are owned by insiders. Comparatively, 11.8% of Ridgepost Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

T. Rowe Price Group beats Ridgepost Capital on 11 of the 17 factors compared between the two stocks.

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.

About Ridgepost Capital

P10, Inc., together with its subsidiaries, operates as a multi-asset class private market solutions provider in the alternative asset management industry in the United States. The company offers private equity, venture capital, private credit, impact investing, and private credit services, as well as primary fund of funds, secondary investment, and direct and co-investments services. It also provides tax credit transaction and consulting services. The company was founded in 1992 and is headquartered in Dallas, Texas.