Legg Mason (NYSE: LM) 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 Legg Mason to related companies based on the strength of its dividends, risk, valuation, institutional ownership, analyst recommendations, earnings and profitability.
Earnings and Valuation
This table compares Legg Mason and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Legg Mason||$2.98 billion||$572.31 million||15.61|
|Legg Mason Competitors||$2.89 billion||$931.92 million||7.28|
Legg Mason has higher revenue, but lower earnings than its competitors. Legg Mason 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.
Volatility and Risk
Legg Mason has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500. Comparatively, Legg Mason’s competitors have a beta of 1.23, meaning that their average stock price is 23% more volatile than the S&P 500.
Legg Mason pays an annual dividend of $1.12 per share and has a dividend yield of 3.0%. Legg Mason pays out 46.5% 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. Legg Mason has raised its dividend for 7 consecutive years. Legg Mason is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
82.3% of Legg Mason shares are held by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 12.7% of Legg Mason shares are held by company insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Legg Mason and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Legg Mason Competitors||-45.49%||7.49%||4.98%|
This is a breakdown of current ratings and price targets for Legg Mason and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Legg Mason Competitors||278||1637||1761||57||2.43|
Legg Mason currently has a consensus target price of $42.89, suggesting a potential upside of 13.98%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 7.40%. Given Legg Mason’s higher possible upside, research analysts clearly believe Legg Mason is more favorable than its competitors.
Legg Mason beats its competitors on 10 of the 15 factors compared.
Legg Mason Company Profile
Legg Mason, Inc. is a holding company. The Company and its subsidiaries are principally engaged in providing asset management and related financial services to individuals, institutions, corporations and municipalities. The Company operates through Global Asset Management segment. Global Asset Management provides investment advisory services to institutional and individual clients and to the Company-sponsored investment funds. The Company, through its subsidiaries, provides investment management and related services to institutional and individual clients, Company-sponsored investment funds and retail separately managed account programs. It offers its products and services directly and through various financial intermediaries. It has operations principally in the United States and the United Kingdom and also has offices in Australia, Bahamas, Brazil, Canada, Chile, China, Dubai, France, Germany, Italy, Japan, Luxembourg, Poland, Singapore, Spain, Switzerland and Taiwan.
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