BLK vs. SCHW, GS, MS, IBKR, HDB, C, TD, MUFG, CB, and PGR
Should you be buying BlackRock stock or one of its competitors? The main competitors of BlackRock include Charles Schwab (SCHW), The Goldman Sachs Group (GS), Morgan Stanley (MS), Interactive Brokers Group (IBKR), HDFC Bank (HDB), Citigroup (C), Toronto-Dominion Bank (TD), Mitsubishi UFJ Financial Group (MUFG), Chubb (CB), and Progressive (PGR). These companies are all part of the "finance" sector.
Charles Schwab (NYSE:SCHW) and BlackRock (NYSE:BLK) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their community ranking, institutional ownership, analyst recommendations, earnings, valuation, profitability, risk, dividends and media sentiment.
BlackRock has a net margin of 32.26% compared to BlackRock's net margin of 26.14%. BlackRock's return on equity of 19.86% beat Charles Schwab's return on equity.
Charles Schwab has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, BlackRock has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
84.4% of Charles Schwab shares are owned by institutional investors. Comparatively, 80.7% of BlackRock shares are owned by institutional investors. 6.6% of Charles Schwab shares are owned by company insiders. Comparatively, 0.9% of BlackRock shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
BlackRock received 248 more outperform votes than Charles Schwab when rated by MarketBeat users. Likewise, 72.71% of users gave BlackRock an outperform vote while only 63.16% of users gave Charles Schwab an outperform vote.
Charles Schwab presently has a consensus price target of $74.47, suggesting a potential downside of 1.42%. BlackRock has a consensus price target of $845.42, suggesting a potential upside of 8.25%. Given Charles Schwab's stronger consensus rating and higher probable upside, analysts clearly believe BlackRock is more favorable than Charles Schwab.
Charles Schwab pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. BlackRock pays an annual dividend of $20.40 per share and has a dividend yield of 2.6%. Charles Schwab pays out 41.8% of its earnings in the form of a dividend. BlackRock pays out 51.8% 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. Charles Schwab has raised its dividend for 2 consecutive years and BlackRock has raised its dividend for 15 consecutive years. BlackRock is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
BlackRock has lower revenue, but higher earnings than Charles Schwab. BlackRock is trading at a lower price-to-earnings ratio than Charles Schwab, indicating that it is currently the more affordable of the two stocks.
In the previous week, BlackRock had 12 more articles in the media than Charles Schwab. MarketBeat recorded 41 mentions for BlackRock and 29 mentions for Charles Schwab. Charles Schwab's average media sentiment score of 0.65 beat BlackRock's score of 0.55 indicating that BlackRock is being referred to more favorably in the news media.
Summary
BlackRock beats Charles Schwab on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BLK and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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