Analyzing BlackRock (BLK) & Its Competitors

BlackRock (NYSE: BLK) is one of 53 publicly-traded companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its peers? We will compare BlackRock to similar companies based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for BlackRock and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackRock 0 4 8 0 2.67
BlackRock Competitors 358 1781 1800 62 2.39

BlackRock presently has a consensus target price of $448.00, suggesting a potential upside of 2.87%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 7.11%. Given BlackRock’s peers higher possible upside, analysts plainly believe BlackRock has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares BlackRock and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
BlackRock $11.52 billion $5.06 billion 20.90
BlackRock Competitors $3.00 billion $962.47 million 6.77

BlackRock has higher revenue and earnings than its peers. BlackRock is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

BlackRock has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, BlackRock’s peers have a beta of 1.23, suggesting that their average share price is 23% more volatile than the S&P 500.

Insider and Institutional Ownership

82.5% of BlackRock shares are owned by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 1.9% of BlackRock shares are owned by company insiders. Comparatively, 10.4% of shares of all “Investment Management & Fund Operators” companies 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 BlackRock and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackRock 29.92% 11.74% 1.53%
BlackRock Competitors -47.33% 7.35% 4.90%

Dividends

BlackRock pays an annual dividend of $10.00 per share and has a dividend yield of 2.3%. BlackRock pays out 48.0% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.7% and pay out 49.4% of their earnings in the form of a dividend. BlackRock has increased its dividend for 7 consecutive years.

Summary

BlackRock beats its peers on 10 of the 15 factors compared.

BlackRock Company Profile

BlackRock, Inc. (BlackRock) is an investment management company. BlackRock provides a range of investment and risk management services to institutional and retail clients worldwide. Its diverse platform of active (alpha) and index (beta) investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients. Its product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Its products are offered directly and through intermediaries in a range of vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds (ETFs), separate accounts, collective investment funds and other pooled investment vehicles. It offers its Aladdin investment system, as well as risk management, outsourcing, advisory and technology services, to institutional investors and wealth management intermediaries under the BlackRock Solutions name.

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