Head to Head Review: Janus Henderson Group (NYSE:JHG) vs. T. Rowe Price Group (NASDAQ:TROW)

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

Analyst Ratings

This is a breakdown of recent ratings for Janus Henderson Group and T. Rowe Price Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Janus Henderson Group	0	2	8	2	3.00
T. Rowe Price Group	4	11	0	1	1.88

Janus Henderson Group currently has a consensus target price of $48.11, indicating a potential upside of 9.41%. T. Rowe Price Group has a consensus target price of $109.00, indicating a potential upside of 3.76%. Given Janus Henderson Group’s stronger consensus rating and higher probable upside, analysts plainly believe Janus Henderson Group is more favorable than T. Rowe Price Group.

Earnings & Valuation

This table compares Janus Henderson Group and T. Rowe Price Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Janus Henderson Group	$2.66 billion	2.55	$408.90 million	$3.41	12.90
T. Rowe Price Group	$7.21 billion	3.18	$2.10 billion	$9.18	11.44

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

Risk and Volatility

Janus Henderson Group has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, T. Rowe Price Group has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Dividends

Janus Henderson Group pays an annual dividend of $1.60 per share and has a dividend yield of 3.6%. T. Rowe Price Group pays an annual dividend of $5.08 per share and has a dividend yield of 4.8%. Janus Henderson Group pays out 46.9% of its earnings in the form of a dividend. T. Rowe Price Group pays out 55.3% 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. Janus Henderson Group has raised its dividend for 1 consecutive years and T. Rowe Price Group has raised its dividend for 39 consecutive years. T. Rowe Price Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

87.9% of Janus Henderson Group shares are held by institutional investors. Comparatively, 73.4% of T. Rowe Price Group shares are held by institutional investors. 19.6% of Janus Henderson Group shares are held by insiders. Comparatively, 2.0% of T. Rowe Price Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Janus Henderson Group and T. Rowe Price Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Janus Henderson Group	19.82%	12.35%	8.20%
T. Rowe Price Group	28.89%	19.95%	15.09%

About Janus Henderson Group

Janus Henderson Group plc is an asset management holding entity. Through its subsidiaries, the firm provides services to institutional, retail clients, and high net worth clients. It manages separate client-focused equity and fixed income portfolios. The firm also manages equity, fixed income, and balanced mutual funds for its clients. It invests in public equity and fixed income markets, as well as invests in real estate and private equity. Janus Henderson Group plc was founded in 1934 and is based in London, United Kingdom with additional offices in Jersey, United Kingdom and Sydney, Australia.

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.