Analyzing T. Rowe Price (TROW) & INTL FCStone (INTL)

T. Rowe Price (NASDAQ: TROW) and INTL FCStone (NASDAQ:INTL) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Valuation & Earnings

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This table compares T. Rowe Price and INTL FCStone’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
T. Rowe Price $4.79 billion 5.47 $1.50 billion $5.43 19.72
INTL FCStone $29.42 billion 0.03 $6.40 million N/A N/A



T. Rowe Price has higher earnings, but lower revenue than INTL FCStone.

Profitability

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

Net Margins Return on Equity Return on Assets
T. Rowe Price 31.07% 25.30% 19.64%
INTL FCStone -0.02% 3.32% 0.23%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for T. Rowe Price and INTL FCStone, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
T. Rowe Price 1 7 3 0 2.18
INTL FCStone 0 0 0 0 N/A

T. Rowe Price presently has a consensus target price of $112.67, indicating a potential upside of 5.20%. Given T. Rowe Price’s higher possible upside, equities research analysts plainly believe T. Rowe Price is more favorable than INTL FCStone.

Insider & Institutional Ownership

73.1% of T. Rowe Price shares are owned by institutional investors. Comparatively, 68.1% of INTL FCStone shares are owned by institutional investors. 3.1% of T. Rowe Price shares are owned by insiders. Comparatively, 20.5% of INTL FCStone shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

T. Rowe Price has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, INTL FCStone has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500.

Dividends

T. Rowe Price pays an annual dividend of $2.80 per share and has a dividend yield of 2.6%. INTL FCStone does not pay a dividend. T. Rowe Price pays out 51.6% of its earnings in the form of a dividend. T. Rowe Price has raised its dividend for 31 consecutive years.

Summary

T. Rowe Price beats INTL FCStone on 10 of the 15 factors compared between the two stocks.

T. Rowe Price Company Profile

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; 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, Germany, Madrid, Spain, Milan, Italy, Stockholm, Sweden, Melbourne, Australia, and Amsterdam, Netherlands.

INTL FCStone Company Profile

INTL FCStone Inc. operates as a financial services company worldwide. The company's Commercial Hedging segment offers risk management consulting services related to agricultural and energy commodities, and base metal products listed on the London Metals Exchange. Its Global Payments segment provides payment solutions to banks and commercial businesses; and charities and non-governmental organizations, and government organizations. The company's Securities segment offers value-added solutions that facilitate cross-border trading in foreign securities, including unlisted American Depositary Receipts, Global Depository Receipts, and foreign ordinary shares. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies. In addition, it originates, structures, and places debt instruments; trades in various international debt instruments; and offers asset management services. The company's Physical Commodities segment provides a range of trading and hedging services comprising OTC products for selecting producers, consumers, and investors. This segment also offers financing services to commercial commodity-related companies against physical inventories. The company's Clearing and Execution Services segment offers prime brokerage foreign exchange services for the financial institutions and professional traders; provides a range of OTC products, including 24-hour a day execution of spot, forwards, and options, as well as non-deliverable forwards; and operates a proprietary foreign exchange desk that arbitrages the exchange-traded foreign exchange markets with the cash markets. The company was formerly known as International Assets Holding Corporation and changed its name to INTL FCStone Inc. in March 2011. INTL FCStone Inc. was founded in 1924 and is based in New York, New York.

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