BlackRock (BLK) versus Cowen Group (COWN) Head-To-Head Analysis

Cowen Group (NASDAQ: COWN) and BlackRock (NYSE:BLK) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Risk and Volatility

Cowen Group has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, BlackRock has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Insider and Institutional Ownership

87.0% of Cowen Group shares are owned by institutional investors. Comparatively, 84.4% of BlackRock shares are owned by institutional investors. 4.9% of Cowen Group shares are owned by company insiders. Comparatively, 1.9% of BlackRock shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

BlackRock pays an annual dividend of $11.52 per share and has a dividend yield of 2.2%. Cowen Group does not pay a dividend. BlackRock pays out 51.0% of its earnings in the form of a dividend. BlackRock has raised its dividend for 8 consecutive years.

Profitability

This table compares Cowen Group and BlackRock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cowen Group -5.91% 4.33% 1.14%
BlackRock 39.22% 12.76% 1.80%

Analyst Recommendations

This is a summary of current recommendations for Cowen Group and BlackRock, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cowen Group 0 1 1 0 2.50
BlackRock 0 4 8 0 2.67

Cowen Group presently has a consensus price target of $17.00, indicating a potential upside of 7.26%. BlackRock has a consensus price target of $562.67, indicating a potential upside of 5.06%. Given Cowen Group’s higher possible upside, analysts clearly believe Cowen Group is more favorable than BlackRock.

Valuation & Earnings

This table compares Cowen Group and BlackRock’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cowen Group $658.78 million 0.71 -$60.88 million N/A N/A
BlackRock $12.49 billion 6.91 $4.97 billion $22.60 23.70

BlackRock has higher revenue and earnings than Cowen Group.

Summary

BlackRock beats Cowen Group on 12 of the 16 factors compared between the two stocks.

Cowen Group Company Profile

Cowen Inc., formerly Cowen Group, Inc., is a financial services company. The Company provides alternative investment management, investment banking, research, sales and trading, and prime brokerage services. It operates through two segments: alternative investment and broker-dealer. The alternative investment segment includes private equity structures, registered investment companies and listed investment vehicles. The broker-dealer segment offers industry focused investment banking for growth-oriented companies, including advisory and global capital markets origination and domain knowledge-driven research, and a sales and trading platform for institutional investors. Its alternative investment platform, which operates under the Ramius name, offers investment products and solutions across the liquidity spectrum to institutional and private clients. Ramius offers investors access to strategies to meet their specific needs, including long/short equity and event driven equity.

BlackRock Company Profile

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.

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