Invesco vs BlackRock Which Is a Smarter Choice?

Invesco and BlackRock are two of the largest asset management companies in the world, with significant influence in the financial markets. Both companies offer a wide range of investment products and services, attracting investors seeking exposure to various asset classes. Invesco has a strong global presence, while BlackRock is known for its innovative technology and industry-leading ETFs. Investors often compare these two companies when considering their investment decisions due to their size, performance, and reputation within the industry.

Invesco or BlackRock?

When comparing Invesco 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 Invesco 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. Invesco has a dividend yield of 6.59%, while BlackRock has a dividend yield of 1.93%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Invesco reports a 5-year dividend growth of -5.90% year and a payout ratio of -256.65%. On the other hand, BlackRock reports a 5-year dividend growth of 10.72% year and a payout ratio of 50.26%.

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 Invesco P/E ratio at -35.56 and BlackRock's P/E ratio at 25.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Invesco P/B ratio is 0.57 while BlackRock's P/B ratio is 3.80.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Invesco has seen a 5-year revenue growth of -0.02%, while BlackRock's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Invesco's ROE at -1.61% and BlackRock's ROE at 15.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.11 for Invesco and $1046.02 for BlackRock. Over the past year, Invesco's prices ranged from $14.16 to $18.94, with a yearly change of 33.76%. BlackRock's prices fluctuated between $745.55 and $1068.34, with a yearly change of 43.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.