TPG (NASDAQ:TPG – Get Free Report) and Invesco (NYSE:IVZ – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Profitability
This table compares TPG and Invesco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TPG | 0.69% | 23.45% | 7.85% |
| Invesco | -3.00% | 8.83% | 3.54% |
Analyst Ratings
This is a breakdown of current ratings and price targets for TPG and Invesco, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TPG | 0 | 7 | 6 | 0 | 2.46 |
| Invesco | 1 | 10 | 1 | 0 | 2.00 |
Institutional & Insider Ownership
94.0% of TPG shares are owned by institutional investors. Comparatively, 66.1% of Invesco shares are owned by institutional investors. 76.5% of TPG shares are owned by company insiders. Comparatively, 2.0% of Invesco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
TPG has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Invesco has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.
Dividends
TPG pays an annual dividend of $1.52 per share and has a dividend yield of 2.4%. Invesco pays an annual dividend of $0.82 per share and has a dividend yield of 4.8%. TPG pays out -447.1% of its earnings in the form of a dividend. Invesco pays out -89.1% 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.
Earnings & Valuation
This table compares TPG and Invesco”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TPG | $2.47 billion | 9.49 | $80.09 million | ($0.34) | -189.12 |
| Invesco | $5.89 billion | 1.31 | -$96.90 million | ($0.92) | -18.65 |
TPG has higher earnings, but lower revenue than Invesco. TPG is trading at a lower price-to-earnings ratio than Invesco, indicating that it is currently the more affordable of the two stocks.
Summary
TPG beats Invesco on 12 of the 16 factors compared between the two stocks.
About TPG
TPG Inc. operates as an alternative asset manager in the United States and internationally. The company offers investment management services to TPG Funds, limited partners, and other vehicles. It also offers monitoring services to portfolio companies; advisory, debt and equity arrangement, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. In addition, the company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is based in Fort Worth, Texas. The company operates as a subsidiary of TPG GP A, LLC.
About Invesco
Invesco Ltd. is a publicly owned investment manager. The firm provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds. It manages separate client-focused equity and fixed income portfolios. The firm also launches equity, fixed income, commodity, multi-asset, and balanced mutual funds for its clients. It launches equity, fixed income, multi-asset, and balanced exchange-traded funds. The firm also launches and manages private funds. It invests in the public equity and fixed income markets across the globe. The firm also invests in alternative markets, such as commodities and currencies. For the equity portion of its portfolio, it invests in growth and value stocks of large-cap, mid-cap, and small-cap companies. For the fixed income portion of its portfolio, the firm invests in convertibles, government bonds, municipal bonds, treasury securities, and cash. It also invests in short term and intermediate term bonds, investment grade and high yield bonds, taxable and tax-free bonds, senior secured loans, and structured securities such as asset-backed securities, mortgage-backed securities, and commercial mortgage-backed securities. The firm employs absolute return, global macro, and long/short strategies. It employs quantitative analysis to make its investments. The firm was formerly known as Invesco Plc, AMVESCAP plc, Amvesco plc, Invesco PLC, Invesco MIM, and H. Lotery & Co. Ltd. Invesco Ltd. was founded in 1935 and is based in Atlanta, Georgia with an additional office in Hamilton, Bermuda.
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