Franklin Resources (NYSE:BEN) vs. Artisan Partners Asset Management (NYSE:APAM) Head to Head Contrast

Franklin Resources (NYSE:BEN) and Artisan Partners Asset Management (NYSE:APAM) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Profitability

This table compares Franklin Resources and Artisan Partners Asset Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franklin Resources 23.80% 13.43% 9.74%
Artisan Partners Asset Management 18.40% 169.94% 23.08%

Volatility & Risk

Franklin Resources has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Artisan Partners Asset Management has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500.

Earnings & Valuation

This table compares Franklin Resources and Artisan Partners Asset Management’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Franklin Resources $6.32 billion 2.16 $764.40 million $3.19 8.50
Artisan Partners Asset Management $828.60 million 2.54 $158.30 million $2.94 9.21

Franklin Resources has higher revenue and earnings than Artisan Partners Asset Management. Franklin Resources is trading at a lower price-to-earnings ratio than Artisan Partners Asset Management, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Franklin Resources and Artisan Partners Asset Management, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franklin Resources 7 4 0 0 1.36
Artisan Partners Asset Management 1 1 1 0 2.00

Franklin Resources currently has a consensus price target of $30.56, indicating a potential upside of 12.78%. Artisan Partners Asset Management has a consensus price target of $28.00, indicating a potential upside of 3.36%. Given Franklin Resources’ higher probable upside, research analysts plainly believe Franklin Resources is more favorable than Artisan Partners Asset Management.

Insider & Institutional Ownership

48.3% of Franklin Resources shares are held by institutional investors. Comparatively, 64.3% of Artisan Partners Asset Management shares are held by institutional investors. 22.2% of Franklin Resources shares are held by insiders. Comparatively, 24.4% of Artisan Partners Asset Management shares are held 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.

Dividends

Franklin Resources pays an annual dividend of $1.04 per share and has a dividend yield of 3.8%. Artisan Partners Asset Management pays an annual dividend of $2.40 per share and has a dividend yield of 8.9%. Franklin Resources pays out 32.6% of its earnings in the form of a dividend. Artisan Partners Asset Management pays out 81.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Franklin Resources has raised its dividend for 37 consecutive years.

Summary

Artisan Partners Asset Management beats Franklin Resources on 10 of the 17 factors compared between the two stocks.

About Franklin Resources

Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. The firm invests in the public equity, fixed income, and alternative markets. Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California with an additional office in Hyderabad, India.

About Artisan Partners Asset Management

Artisan Partners Asset Management Inc. is publicly owned investment manager. It provides its services to pension and profit sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds and non-U.S. funds, as well as mutual funds, non-U.S. funds and collective trusts. It manages separate client-focused equity and fixed income portfolios. The firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of companies across all market capitalization. For fixed income component of its portfolio the firm invests in non-investment grade corporate bonds and secured and unsecured loans. It employs fundamental analysis to create its portfolios. Artisan Partners Asset Management Inc. was founded in 1994 and is based in Milwaukee, Wisconsin with additional offices in Atlanta, Georgia; New York City; San Francisco, California; Leawood, Kansas; and London, United Kingdom.

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