BlackRock (BLK) vs. Merriman (MERR) Financial Contrast

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

Profitability

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

Net Margins Return on Equity Return on Assets
BlackRock 39.92% 13.72% 2.19%
Merriman N/A N/A N/A

Dividends

BlackRock pays an annual dividend of $12.52 per share and has a dividend yield of 3.1%. Merriman does not pay a dividend. BlackRock pays out 55.4% of its earnings in the form of a dividend. BlackRock has increased its dividend for 8 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for BlackRock and Merriman, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackRock 0 2 10 0 2.83
Merriman 0 0 0 0 N/A

BlackRock currently has a consensus price target of $549.33, suggesting a potential upside of 35.10%. Given BlackRock’s higher probable upside, analysts plainly believe BlackRock is more favorable than Merriman.

Earnings and Valuation

This table compares BlackRock and Merriman’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BlackRock $12.49 billion 5.13 $4.97 billion $22.60 17.99
Merriman N/A N/A N/A N/A N/A

BlackRock has higher revenue and earnings than Merriman.

Insider and Institutional Ownership

80.4% of BlackRock shares are held by institutional investors. 1.9% of BlackRock shares are held by company insiders. Comparatively, 63.0% of Merriman shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

BlackRock has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Merriman has a beta of 2.97, meaning that its stock price is 197% more volatile than the S&P 500.

Summary

BlackRock beats Merriman on 9 of the 12 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.

Merriman Company Profile

Merriman Holdings, Inc., through its subsidiary, Merriman Capital, Inc., provides capital market advisory and research, corporate, and investment banking services primarily in the United States and Canada. The company's investment banking services include corporate financing services, such as initial public offerings, secondary offerings, and private placements services; and strategic advisory services comprise transaction-specific advice regarding mergers and acquisitions, divestitures, spin-offs, and privatizations, as well as general strategic advice. It also offers institutional brokerage services, including institutional sales trading and equity execution, and options execution services to institutional clients. In addition, the company executes securities transactions for money managers, mutual funds, hedge funds, insurance companies, and pension and profit-sharing plans; and provides integrated research and trading solutions, as well as capital markets advisory services. It primarily serves institutional investors and corporate clients. The company was formerly known as Merriman Curhan Ford Group, Inc. and changed its name to Merriman Holdings, Inc. in August 2010. Merriman Holdings, Inc. was founded in 1987 and is headquartered in San Francisco, California.

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