Head-To-Head Contrast: TPG (NASDAQ:TPG) and BlackRock (NYSE:BLK)

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

Insider and Institutional Ownership

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

Analyst Ratings

This is a summary of current ratings and price targets for TPG and BlackRock, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG	0	8	8	2	2.67
BlackRock	0	3	17	0	2.85

TPG currently has a consensus target price of $66.92, suggesting a potential upside of 0.12%. BlackRock has a consensus target price of $1,313.65, suggesting a potential upside of 21.12%. Given BlackRock’s stronger consensus rating and higher possible upside, analysts plainly believe BlackRock is more favorable than TPG.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG	$3.50 billion	7.22	$23.48 million	$0.09	742.72
BlackRock	$20.41 billion	8.25	$6.37 billion	$38.89	27.89

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.

Dividends

TPG pays an annual dividend of $1.80 per share and has a dividend yield of 2.7%. BlackRock pays an annual dividend of $20.84 per share and has a dividend yield of 1.9%. 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 pays out 53.6% of its earnings in the form of a dividend. BlackRock has increased its dividend for 16 consecutive years.

Profitability

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

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

Risk and Volatility

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

Summary

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

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.

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.