Analyzing BlackRock (BLK) and Oppenheimer (OPY)

BlackRock (NYSE:BLK) and Oppenheimer (NYSE:OPY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for BlackRock and Oppenheimer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackRock 0 2 11 0 2.85
Oppenheimer 0 0 0 0 N/A

BlackRock currently has a consensus target price of $510.80, suggesting a potential upside of 9.69%. Given BlackRock’s higher probable upside, research analysts plainly believe BlackRock is more favorable than Oppenheimer.

Institutional and Insider Ownership

83.6% of BlackRock shares are owned by institutional investors. Comparatively, 47.0% of Oppenheimer shares are owned by institutional investors. 1.4% of BlackRock shares are owned by company insiders. Comparatively, 25.7% of Oppenheimer shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BlackRock $14.20 billion 5.18 $4.31 billion $26.93 17.29
Oppenheimer $958.15 million 0.35 $28.89 million N/A N/A

BlackRock has higher revenue and earnings than Oppenheimer.

Risk and Volatility

BlackRock has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Oppenheimer has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Dividends

BlackRock pays an annual dividend of $13.20 per share and has a dividend yield of 2.8%. Oppenheimer pays an annual dividend of $0.44 per share and has a dividend yield of 1.7%. BlackRock pays out 49.0% of its earnings in the form of a dividend. BlackRock has increased its dividend for 9 consecutive years. BlackRock is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Net Margins Return on Equity Return on Assets
BlackRock 30.58% 13.35% 2.45%
Oppenheimer 3.02% 7.06% 1.58%

Summary

BlackRock beats Oppenheimer on 13 of the 15 factors compared between the two stocks.

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.

Oppenheimer Company Profile

Oppenheimer Holdings Inc., through its subsidiaries, provides middle-market investment bank and full service broker-dealer products and services. The company offers full-service brokerage services covering exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It also provides asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, fee-based non-discretionary investment advisory services, alternative investments, portfolio enhancement programs, investment advisory services, and institutional taxable fixed income portfolio management services, as well as taxable and non-taxable fixed income portfolios and strategies. In addition, the company offers investment banking services, such as strategic advisory services and capital markets products; merger and acquisition, equities capital market, and debt capital market products and services; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, and event driven sales and trading services. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; repurchase agreements and securities lending services; and proprietary trading and investment activities. Additionally, the company offers underwritings, market-making, trust, and discount services. It serves high-net-worth individuals and families, corporate executives, public and private businesses, institutions and investment advisers, financial sponsors, and domestic and international investors in the Americas, Europe, the Middle East, and Asia. The company was founded in 1881 and is headquartered in New York, New York.

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