T. Rowe Price Group (NASDAQ:TROW) versus SEI Investments (NASDAQ:SEIC) Financial Contrast

T. Rowe Price Group (NASDAQ:TROW) and SEI Investments (NASDAQ:SEIC) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

73.4% of T. Rowe Price Group shares are owned by institutional investors. Comparatively, 70.6% of SEI Investments shares are owned by institutional investors. 1.6% of T. Rowe Price Group shares are owned by company insiders. Comparatively, 4.8% of SEI Investments shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
T. Rowe Price Group	28.28%	20.60%	15.55%
SEI Investments	31.17%	30.70%	24.76%

Dividends

T. Rowe Price Group pays an annual dividend of $5.20 per share and has a dividend yield of 5.0%. SEI Investments pays an annual dividend of $1.04 per share and has a dividend yield of 1.2%. T. Rowe Price Group pays out 55.7% of its earnings in the form of a dividend. SEI Investments pays out 17.7% 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 and SEI Investments has increased its dividend for 34 consecutive years. T. Rowe Price Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations for T. Rowe Price Group and SEI Investments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T. Rowe Price Group	4	11	0	0	1.73
SEI Investments	0	1	7	0	2.88

T. Rowe Price Group presently has a consensus price target of $99.54, suggesting a potential downside of 4.30%. SEI Investments has a consensus price target of $103.00, suggesting a potential upside of 18.38%. Given SEI Investments’ stronger consensus rating and higher probable upside, analysts clearly believe SEI Investments is more favorable than T. Rowe Price Group.

Risk and Volatility

T. Rowe Price Group has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, SEI Investments has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Valuation & Earnings

This table compares T. Rowe Price Group and SEI Investments”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	3.05	$2.09 billion	$9.33	11.15
SEI Investments	$2.30 billion	4.56	$715.30 million	$5.86	14.85

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

Summary

SEI Investments beats T. Rowe Price Group on 10 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 SEI Investments

SEI Investments Company is a publicly owned asset management holding company. Through its subsidiaries, the firm provides wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services to its clients. It provides its services to private banks, independent financial advisers, institutional investors, investment managers, investment advisors, wealth management organizations, corporations, retirement scheme sponsors, not-for-profit organizations, hedge fund managers, registered investment advisers, independent broker-dealers, financial planners, life insurance agents, defined-benefit schemes, defined-contribution schemes, endowments, foundations, and board-designated fund, through its subsidiaries. Through its subsidiaries, the firm manages separate client-focused portfolios. It also launches and manages equity, fixed income, and balanced mutual funds, through its subsidiaries. Through its subsidiaries, the firm invests in public equity and fixed income markets. It employs fundamental and quantitative analysis with a focus on top-down and bottom-up analysis to make its investments, through its subsidiaries. SEI Investments Company was founded in 1968 and is based in Oaks, Pennsylvania.