Schroders (SDR) Competitors

Schroders (LON:SDR) and Legal & General Group (LON:LGEN) are both financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, media sentiment, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Do insiders and institutionals have more ownership in SDR or LGEN?

33.9% of Schroders shares are owned by institutional investors. Comparatively, 47.2% of Legal & General Group shares are owned by institutional investors. 43.1% of Schroders shares are owned by insiders. Comparatively, 0.9% of Legal & General Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Is SDR or LGEN more profitable?

Schroders has a net margin of 12.81% compared to Legal & General Group's net margin of 0.67%. Schroders' return on equity of 8.65% beat Legal & General Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Schroders	12.81%	8.65%	1.86%
Legal & General Group	0.67%	7.79%	0.18%

Does the media prefer SDR or LGEN?

In the previous week, Legal & General Group had 5 more articles in the media than Schroders. MarketBeat recorded 10 mentions for Legal & General Group and 5 mentions for Schroders. Legal & General Group's average media sentiment score of 1.42 beat Schroders' score of 0.91 indicating that Legal & General Group is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Schroders	0 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Legal & General Group	5 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better earnings & valuation, SDR or LGEN?

Schroders has higher earnings, but lower revenue than Legal & General Group. Schroders is trading at a lower price-to-earnings ratio than Legal & General Group, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schroders	£2.78B	2.13	£355.50M	£22.90	16.60
Legal & General Group	£47.90B	0.31	£319.08M	£5.42	46.89

Do analysts recommend SDR or LGEN?

Schroders presently has a consensus price target of GBX 386.25, indicating a potential upside of 1.59%. Legal & General Group has a consensus price target of GBX 268.33, indicating a potential upside of 5.64%. Given Legal & General Group's stronger consensus rating and higher possible upside, analysts plainly believe Legal & General Group is more favorable than Schroders.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schroders	0 Sell rating(s)	3 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.25
Legal & General Group	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	3.00

Which has more volatility & risk, SDR or LGEN?

Schroders has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Legal & General Group has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Is SDR or LGEN a better dividend stock?

Schroders pays an annual dividend of GBX 22 per share and has a dividend yield of 5.8%. Legal & General Group pays an annual dividend of GBX 21 per share and has a dividend yield of 8.3%. Schroders pays out 96.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Legal & General Group pays out 387.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Legal & General Group beats Schroders on 11 of the 19 factors compared between the two stocks.