Analyzing Franklin Resources (BEN) and Its Rivals

Franklin Resources (NYSE: BEN) is one of 55 publicly-traded companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its competitors? We will compare Franklin Resources to similar companies based on the strength of its analyst recommendations, valuation, dividends, risk, institutional ownership, profitability and earnings.

Volatility and Risk

Franklin Resources has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, Franklin Resources’ competitors have a beta of 1.23, suggesting that their average share price is 23% more volatile than the S&P 500.

Institutional & Insider Ownership

45.0% of Franklin Resources shares are owned by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 21.6% of Franklin Resources shares are owned by company insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Franklin Resources and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Franklin Resources $6.39 billion $2.31 billion 14.64
Franklin Resources Competitors $2.89 billion $931.92 million 7.45

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

Profitability

This table compares Franklin Resources and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franklin Resources 27.30% 13.96% 10.41%
Franklin Resources Competitors -45.49% 7.49% 4.98%

Dividends

Franklin Resources pays an annual dividend of $0.80 per share and has a dividend yield of 1.8%. Franklin Resources pays out 26.1% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.6% and pay out 49.3% of their earnings in the form of a dividend. Franklin Resources has increased its dividend for 35 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for Franklin Resources and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franklin Resources 3 6 1 0 1.80
Franklin Resources Competitors 279 1638 1762 57 2.43

Franklin Resources currently has a consensus price target of $43.67, suggesting a potential downside of 2.53%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 7.70%. Given Franklin Resources’ competitors stronger consensus rating and higher probable upside, analysts clearly believe Franklin Resources has less favorable growth aspects than its competitors.

Summary

Franklin Resources beats its competitors on 9 of the 15 factors compared.

Franklin Resources Company Profile

Franklin Resources, Inc. is a holding company. The Company, along with its subsidiaries, operates as Franklin Templeton Investments. It is a global investment management company that provides investment management and related services to retail, institutional and high net-worth clients in jurisdictions around the world. The Company offers its investment products and services under the Franklin, Templeton, Franklin Mutual Series, Franklin Bissett, Fiduciary Trust, Darby, Balanced Equity Management, K2 and LibertyShares brand names. Its products include investment funds and institutional, high net-worth and separately managed accounts (collectively, sponsored investment products (SIPs)). It offers various types of SIPs, such as the United States funds, cross-border funds, local/regional funds, and other managed accounts, alternative investment products and trusts. Its investment funds include the United States-registered funds, non-United States-registered funds and unregistered funds.

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