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How Does Legg Mason Compare with Its Peers?

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Legg Mason and its peers

In this article, we’ll compare Legg Mason with its peers.

  • The PE (price-to-earnings) ratios of Legg Mason (LM), BlackRock (BLK), Franklin Resources (BEN), Voya Financial (VOYA), and Eaton Vance (EV) are 19.5x, 18.1x, 12.4x, 4.4x and 17.6x, respectively.

  • The PBV (price-to-book value) ratios of Legg Mason, BlackRock, Franklin, Voya, and Eaton Vance are 1.1x, 2.1x, 2.1x, 0.6x, and 6.6x, respectively.

According to the above findings, peers have outperformed Legg Mason based on PBV. However, the company is way ahead of its peers based on PE.

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ETFs that invest in Legg Mason

The PowerShares KBW Capital Markets Portfolio ETF (KBWC) invests 3.6% of its holdings in the company. The ETF tracks an index of large-cap capital markets companies weighted in tiers.

The SPDR S&P Capital Markets ETF (KCE) invests 2.8% of its holdings in the company. The ETF tracks an equal-weighted index of capital markets companies, as defined by the GICS (Global Industry Classification Standard).

The Guggenheim S&P Equal Weight Financials ETF (RYF) invests 1.1% of its holdings in the company. The ETF tracks an equally-weighted index of financial stocks pulled from the S&P 500.

Comparing Legg Mason with its ETFs

Now let’s compare Legg Mason with the ETFs that invest in it:

  • The year-to-date price movements of Legg Mason, KBWC, KCE, and RYF are -15.2%, -1.1%, -10.2%, and 0.6%, respectively.
  • The PE (price-to-earnings) ratios of Legg Mason, KBWC, KCE, and RYF are 19.5x, 15.6x, 15.0x, and 19.4x, respectively.
  • The PBV (price-to-book value) ratios of Legg Mason, KBWC, KCE, and RYF are 1.1x, 1.8x, 1.9x, and 1.4x, respectively.

According to the above findings, the ETFs have outperformed Legg Mason based on price movement and PBV. However, Legg Mason is way ahead of its ETFs based on PE.

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