Home > Comparison > Financial Services > BEN vs IVZ
The strategic rivalry between Franklin Resources, Inc. and Invesco Ltd. shapes the competitive landscape of the asset management industry. Franklin operates as a diversified asset management holding company with a broad mutual fund lineup. Invesco distinguishes itself through a multi-strategy investment approach, including ETFs and private funds. This analysis will assess which firm’s operational model delivers superior risk-adjusted returns for a well-balanced investment portfolio.
Table of contents
Companies Overview
Franklin Resources, Inc. and Invesco Ltd. both command significant presence in the asset management industry, shaping global investment trends.
Franklin Resources, Inc.: Established Asset Manager with Diverse Fund Offerings
Franklin Resources, Inc. focuses on asset management, serving individuals and institutions via subsidiaries. It generates revenue primarily through managing equity, fixed income, balanced, and multi-asset mutual funds. In 2026, the company emphasizes expanding its global footprint and product innovation to sustain competitive advantage in public equity and alternative markets.
Invesco Ltd.: Global Investment Manager with Broad Product Suite
Invesco Ltd. operates as a diversified investment manager catering to retail, institutional, and high-net-worth clients. It earns revenue by managing equity, fixed income, commodity, multi-asset, and balanced mutual and exchange-traded funds. Invesco’s 2026 strategy centers on leveraging quantitative analysis and alternative market exposure to enhance portfolio performance worldwide.
Strategic Collision: Similarities & Divergences
Both firms prioritize multi-asset investment solutions but differ in approach: Franklin leans on traditional mutual funds, while Invesco integrates quantitative methods and alternative strategies. Their competition centers on attracting institutional and retail assets across global markets. This divergence shapes distinct investment profiles—Franklin as a classic asset manager, Invesco as a data-driven innovator.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Franklin Resources, Inc. (BEN) | Invesco Ltd. (IVZ) |
|---|---|---|
| Revenue | 8.77B | 6.38B |
| Cost of Revenue | 1.72B | 3.62B |
| Operating Expenses | 6.44B | 3.45B |
| Gross Profit | 7.05B | 2.75B |
| EBITDA | 1.41B | 1.38B |
| EBIT | 882M | -547M |
| Interest Expense | 95M | 83M |
| Net Income | 525M | -282M |
| EPS | 0.91 | -1.61 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This comparison reveals which company operates its business with more financial efficiency and sustainable profitability.
Franklin Resources, Inc. Analysis
Franklin Resources shows steady revenue growth from 7.8B in 2023 to 8.8B in 2025, with net income declining sharply over the period. Despite a dip in EBIT by 4.2% last year, its gross margin stands strong at 80.3%, reflecting healthy cost control. The 2025 net margin improved to 6%, suggesting recent operational gains.
Invesco Ltd. Analysis
Invesco’s revenue rose moderately to 6.4B in 2025, but it reported a net loss of 282M, reversing prior profits. The gross margin at 43.2% is far lower than Franklin’s, while the EBIT margin is negative at -8.6%, signaling operational challenges. The steep decline in net income and EPS highlights weakened profitability momentum.
Margin Strength vs. Profitability Stability
Franklin Resources outperforms Invesco clearly with superior margins and positive net income, despite some recent earnings pressure. Invesco struggles with losses and negative EBIT margin, undermining its core profitability. Investors prioritizing consistent margin strength and earnings stability will find Franklin’s profile more attractive.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of each firm:
| Ratios | Franklin Resources, Inc. (BEN) | Invesco Ltd. (IVZ) |
|---|---|---|
| ROE | 4.3% | 0% |
| ROIC | 1.4% | 0% |
| P/E | 22.7 | -16.4 |
| P/B | 1.0 | 0 |
| Current Ratio | 2.7 | 0 |
| Quick Ratio | 2.7 | 0 |
| D/E | 1.10 | 0 |
| Debt-to-Assets | 41.1% | 0% |
| Interest Coverage | 6.4 | 8.4 |
| Asset Turnover | 0.27 | 0 |
| Fixed Asset Turnover | 5.12 | 0 |
| Payout Ratio | 130% | -52% |
| Dividend Yield | 5.7% | 3.2% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, exposing hidden risks and revealing operational effectiveness crucial for investment decisions.
Franklin Resources, Inc.
Franklin Resources shows a modest 4.35% ROE and neutral 5.98% net margin, signaling limited profitability. Its P/E of 22.67 suggests a fairly valued stock. The company maintains a solid current ratio of 2.71 and supports shareholders with a 5.75% dividend yield, reflecting steady income distribution rather than aggressive reinvestment.
Invesco Ltd.
Invesco reports a negative net margin of -11.39% and zero ROE, signaling operational challenges. Despite a favorable negative P/E ratio (-16.37), its liquidity ratios are unavailable, posing transparency concerns. The 3.18% dividend yield offers moderate shareholder returns amid weak profitability and financial health metrics.
Balanced Valuation vs. Profitability Concerns
Franklin Resources balances moderate profitability with stable dividends and strong liquidity, presenting a slightly favorable risk profile. Invesco suffers from low profitability and missing liquidity data, despite attractive valuation metrics. Investors prioritizing income and operational stability may lean toward Franklin, while risk-tolerant investors might assess Invesco’s turnaround potential.
Which one offers the Superior Shareholder Reward?
I compare Franklin Resources, Inc. (BEN) and Invesco Ltd. (IVZ) on dividends, payout ratios, and buybacks. BEN yields 5.7% with a payout ratio above 130%, risking sustainability despite solid free cash flow (1.77/share). IVZ yields 3.2% but shows inconsistent profit margins and a negative net margin in 2025, questioning dividend safety. BEN’s steady buybacks and strong cash ratios contrast with IVZ’s volatile buyback history. I see BEN’s distribution model as more sustainable and attractive for total return in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Franklin Resources, Inc. and Invesco Ltd., highlighting their core financial strengths and weaknesses:
Franklin Resources shows a more balanced profile with favorable scores in discounted cash flow (4) and return on assets (4). Invesco, however, suffers across the board with very unfavorable scores, particularly in return on equity (1) and debt-to-equity (1). Franklin leans on asset efficiency and moderate leverage, while Invesco relies heavily on low valuation metrics, albeit weak ones.
Bankruptcy Risk: Solvency Showdown
The Altman Z-Score difference signals contrasting financial survival odds in this cycle:
Both firms sit in the distress zone, with Franklin at 1.43 and Invesco lower at 0.96. Franklin’s higher score suggests a marginally better buffer against bankruptcy risk, but both face significant solvency challenges.
Financial Health: Quality of Operations
Piotroski F-Scores highlight internal financial quality and operational strength:
Invesco scores a strong 7, indicating robust financial health and efficient operations. Franklin’s score of 6 is average, suggesting some internal weaknesses relative to Invesco. Despite Franklin’s better solvency score, Invesco shows better operational metrics, a red flag for investors balancing risk and quality.
How are the two companies positioned?
This section dissects the operational DNA of BEN and IVZ by comparing their revenue distribution and internal dynamics. The final goal is to confront their economic moats to determine which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Franklin Resources, Inc. and Invesco Ltd. diversify their income streams and where their primary sector bets lie:
Franklin Resources, Inc. anchors its revenue in Investment Advisory, Management and Administrative Service with $6.98B, dwarfing other segments like Sales and Distribution Fees at $1.47B. Invesco Ltd. shows a similar pattern, with Investment Advice at $4.34B dominating over Distribution and Shareholder Service at $1.48B. Both firms rely heavily on advisory services, but Franklin Resources displays slightly more diversification with meaningful secondary revenue streams, reducing concentration risk compared to Invesco’s tighter focus.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Franklin Resources, Inc. and Invesco Ltd.:
Franklin Resources, Inc. Strengths
- Favorable capital structure with a low WACC and strong liquidity ratios
- Stable net margin and dividend yield
- Diversified revenue streams including advisory and distribution fees
- Strong presence in the US and Luxembourg markets
- Efficient fixed asset turnover
Invesco Ltd. Strengths
- Favorable valuation metrics including P/E and P/B ratios
- Low debt levels and favorable debt-to-assets ratio
- Positive dividend yield
- Geographic diversification across Americas, Asia, and EMEA
- Significant investment advice revenue
Franklin Resources, Inc. Weaknesses
- Unfavorable returns on equity and invested capital
- High debt-to-equity ratio
- Low asset turnover indicating potential inefficiency
- Moderate market share concentration in the US
- Neutral net margin and dividend yield
Invesco Ltd. Weaknesses
- Negative net margin and zero returns on equity and invested capital
- Lack of available WACC data impairs cost of capital assessment
- Poor liquidity ratios and negative interest coverage
- Low asset and fixed asset turnover ratios
- Overall unfavorable financial ratios indicating operational challenges
Both companies show distinct strengths: Franklin Resources benefits from solid liquidity and capital efficiency but faces challenges in profitability metrics. Invesco’s valuation and low leverage contrast with operational and profitability weaknesses. These differences highlight contrasting strategic and financial profiles.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only barrier protecting long-term profits from relentless competitive erosion. Let’s dissect how Franklin Resources and Invesco defend their turf:
Franklin Resources, Inc.: Intangible Asset Moat Anchored in Brand and Scale
Franklin’s primary moat lies in its brand reputation and scale within asset management. This manifests as stable margins and a decent gross margin of 80%. However, declining ROIC signals weakening capital efficiency. New markets could deepen its moat if innovation accelerates in 2026.
Invesco Ltd.: Diverse Product Range Moat with Operational Challenges
Invesco’s moat stems from a broad product mix and global reach, contrasting Franklin’s brand strength. Yet, its negative EBIT margin and declining ROIC reveal operational strains. Growth opportunities exist in alternative investments but require shoring up profitability first.
Stable Brand vs. Product Breadth: Which Moat Holds Stronger?
Franklin boasts a wider moat through brand scale and margin stability despite value destruction signs. Invesco’s broader product moat struggles with profitability. Franklin remains better positioned to defend market share if it halts its ROIC decline.
Which stock offers better returns?
The stock price trends over the past year reveal contrasting dynamics, with one showing significant gains and the other facing notable declines, reflecting distinct market sentiment and trading activity.
Trend Comparison
Franklin Resources, Inc. (BEN) shows a bearish trend with a -5.1% price decline over 12 months, despite recent acceleration and a 20.07% gain from November 2025 to February 2026.
Invesco Ltd. (IVZ) exhibits a strong bullish trend with a 71.85% increase over the last year and sustained acceleration; recent gains of 16.03% confirm continued upward momentum.
Comparing both, IVZ outperforms BEN significantly in market returns, delivering the highest price appreciation and stronger buyer dominance throughout the period.
Target Prices
Analysts present a mixed but grounded target price outlook for Franklin Resources and Invesco Ltd.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Franklin Resources, Inc. | 25 | 25 | 25 |
| Invesco Ltd. | 24 | 34.5 | 29.8 |
Franklin Resources’ target consensus at $25 sits slightly below its current price of $26.62, signaling modest downside risk. Invesco’s wider range and $29.8 consensus suggest a potential 9% upside from the $27.29 price, reflecting greater analyst optimism.
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How do institutions grade them?
Franklin Resources, Inc. Grades
The following table summarizes recent grades from recognized financial institutions for Franklin Resources, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Underweight | 2026-01-15 |
| TD Cowen | Maintain | Buy | 2026-01-14 |
| Barclays | Maintain | Underweight | 2025-12-12 |
| JP Morgan | Maintain | Neutral | 2025-11-10 |
| Barclays | Maintain | Underweight | 2025-10-21 |
| Evercore ISI Group | Maintain | Underperform | 2025-10-09 |
| B of A Securities | Maintain | Underperform | 2025-10-02 |
| Morgan Stanley | Maintain | Underweight | 2025-08-12 |
| JP Morgan | Maintain | Neutral | 2025-08-04 |
| Barclays | Maintain | Underweight | 2025-08-04 |
Invesco Ltd. Grades
Below is the table of recent institutional grades for Invesco Ltd., showing mostly stable or positive outlooks:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | Maintain | Neutral | 2026-01-28 |
| Barclays | Maintain | Equal Weight | 2026-01-28 |
| RBC Capital | Maintain | Outperform | 2026-01-28 |
| Argus Research | Maintain | Buy | 2026-01-28 |
| RBC Capital | Upgrade | Outperform | 2026-01-21 |
| JP Morgan | Maintain | Neutral | 2026-01-20 |
| Barclays | Maintain | Equal Weight | 2026-01-15 |
| Deutsche Bank | Upgrade | Buy | 2025-12-17 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-17 |
| Barclays | Maintain | Equal Weight | 2025-12-12 |
Which company has the best grades?
Invesco Ltd. consistently receives stronger grades, including upgrades to Outperform and Buy. Franklin Resources, Inc. mostly holds Underweight or Neutral ratings. This suggests investors may view Invesco more favorably.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Franklin Resources, Inc. (BEN)
- Faces moderate pressure with neutral net margin and unfavorable ROE, struggling to expand asset turnover.
Invesco Ltd. (IVZ)
- Struggles significantly with negative net margin and zero ROE, reflecting poor profitability and competitive challenges.
2. Capital Structure & Debt
Franklin Resources, Inc. (BEN)
- Leverages debt moderately (D/E 1.1) but maintains good interest coverage (9.29), indicating manageable debt costs.
Invesco Ltd. (IVZ)
- Shows no reported debt metrics but negative interest coverage (-6.63) signals potential financial distress or reporting gaps.
3. Stock Volatility
Franklin Resources, Inc. (BEN)
- Beta at 1.47 implies above-market volatility but consistent trading volume supports liquidity.
Invesco Ltd. (IVZ)
- Higher beta at 1.63 points to greater volatility risk, with less average volume than BEN, suggesting thinner liquidity.
4. Regulatory & Legal
Franklin Resources, Inc. (BEN)
- Operates under standard financial regulations with no recent major legal issues reported.
Invesco Ltd. (IVZ)
- Similarly regulated but recent financial instability could elevate scrutiny and legal risks.
5. Supply Chain & Operations
Franklin Resources, Inc. (BEN)
- Robust operational efficiency in fixed asset turnover (5.12) but weak asset turnover overall (0.27).
Invesco Ltd. (IVZ)
- Data unavailable or zero values suggest operational inefficiencies or reporting gaps.
6. ESG & Climate Transition
Franklin Resources, Inc. (BEN)
- No explicit ESG data; as an asset manager, ESG integration may affect fund inflows and reputation.
Invesco Ltd. (IVZ)
- ESG factors likely impact client retention; absence of data raises transparency questions.
7. Geopolitical Exposure
Franklin Resources, Inc. (BEN)
- Based in the US with global operations; geopolitical tensions could affect international investments.
Invesco Ltd. (IVZ)
- Also US-based with global reach, exposed to similar geopolitical risks affecting asset allocation.
Which company shows a better risk-adjusted profile?
Franklin Resources faces moderate market and financial risks but maintains better capital structure and operational metrics. Invesco exhibits severe profitability issues and high financial distress indicators, signaling weaker risk management. BEN’s higher interest coverage and manageable leverage give it a superior risk-adjusted profile. The most impactful risk for BEN is its low ROIC versus WACC, limiting value creation. For IVZ, negative profitability and interest coverage are red flags. BEN’s stable dividend yield of 5.75% and positive Altman Z-Score contrast sharply with IVZ’s distress signals, justifying caution for investors.
Final Verdict: Which stock to choose?
Franklin Resources, Inc. (BEN) excels as a cash-generating machine with steady operational efficiency and a solid balance sheet. Its point of vigilance lies in declining profitability metrics and a concerning value destruction trend. BEN suits investors seeking a disciplined, income-focused portfolio with moderate growth ambitions.
Invesco Ltd. (IVZ) offers a strategic moat through cost control and recurring management fees, underpinning its portfolio stability. Despite weaker profitability and financial distress signals, IVZ displays a more dynamic price momentum and lower leverage risk versus BEN. This profile fits well in a GARP strategy seeking turnaround potential with moderate risk tolerance.
If you prioritize capital preservation and reliable income streams, BEN is the compelling choice due to its favorable cash flow and balance sheet strength. However, if you seek growth with a tolerance for volatility and a potential rebound, IVZ offers better momentum and operational leverage upside. Both present risks; BEN’s value erosion and IVZ’s earnings instability warrant close monitoring.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Franklin Resources, Inc. and Invesco Ltd. to enhance your investment decisions:
