Franklin Resources vs BlackRock Which Outperforms?

Franklin Resources and BlackRock are two powerhouse companies in the investment management industry. Both are well-known for their expertise in asset management and their ability to deliver strong returns for their clients. However, there are stark differences between the two companies in terms of size, investment strategies, and market presence. Franklin Resources, commonly known as Franklin Templeton, has a long history of success and a more conservative approach to investing, while BlackRock is the largest asset manager in the world, known for its innovative strategies and cutting-edge technologies. Investors looking to choose between these two stocks must consider their risk tolerance, investment goals, and market outlook.

Franklin Resources or BlackRock?

When comparing Franklin Resources and BlackRock, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Franklin Resources and BlackRock.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Franklin Resources has a dividend yield of 5.75%, while BlackRock has a dividend yield of 2.41%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Franklin Resources reports a 5-year dividend growth of -24.71% year and a payout ratio of 138.08%. On the other hand, BlackRock reports a 5-year dividend growth of 10.72% year and a payout ratio of 50.12%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Franklin Resources P/E ratio at 23.96 and BlackRock's P/E ratio at 25.68. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Franklin Resources P/B ratio is 0.87 while BlackRock's P/B ratio is 3.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Franklin Resources has seen a 5-year revenue growth of 0.36%, while BlackRock's is 0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Franklin Resources's ROE at 3.74% and BlackRock's ROE at 15.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.15 for Franklin Resources and $1047.50 for BlackRock. Over the past year, Franklin Resources's prices ranged from $18.95 to $30.32, with a yearly change of 60.00%. BlackRock's prices fluctuated between $658.14 and $1068.34, with a yearly change of 62.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.