We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
T. Rowe Price vs. Lazard: Which Stock Has More Growth Potential?
Read MoreHide Full Article
Key Takeaways
TROW and LAZ are diversified asset managers with global reach and multiple revenue streams.
TROW is expanding via partnerships and alternatives while strengthening its retirement platform.
LAZ is growing through acquisitions and building its private capital and advisory businesses.
T. Rowe Price Group, Inc. (TROW - Free Report) and Lazard, Inc. (LAZ - Free Report) are well-established investment management firms with broad capabilities across equities, fixed income, multi-asset and alternative investments. While T. Rowe Price primarily focuses on investment management services for individual and institutional clients, Lazard complements its asset-management operations with a leading financial-advisory business. Both firms benefit from diversified client bases and global operating platforms, though differences in their business mix, growth strategies and revenue drivers could influence their future performance.
The asset management industry has been facing pressure from rising technology and artificial intelligence (AI)-related expenses, which may weigh on near-term profitability despite long-term efficiency gains. The ongoing shift toward low-cost passive products continues to compress fees and intensify competition, prompting firms to pursue mergers and partnerships to gain scale. In addition, recent private credit concerns could moderate near-term flows into higher-fee alternative strategies. Nevertheless, steady inflows are supporting growth in assets under management (AUM).
Against this backdrop, investors naturally ask: Which firm, TROW or LAZ, has better potential? To answer that, we need to examine their fundamentals more closely.
The Case for TROW
T. Rowe Price has been strengthening its platform through strategic partnerships and acquisitions. In September 2025, the company partnered with Goldman Sachs (GS - Free Report) to develop public and private market solutions tailored for retirement and wealth investors, with additional retirement-focused offerings expected to launch later in 2026. Earlier in 2025, it partnered with Aspida to manage public and private assets, expanding the company’s presence in insurance asset management. Together, these initiatives have strengthened the company's investment platform and diversified its revenue streams, supporting long-term growth prospects.
Meanwhile, T. Rowe Price’s diversified AUM across various asset classes, client bases and geographies provides stability and supports sustainable earnings. The company's efforts to expand its retirement, insurance and alternative investment capabilities have contributed to favorable asset flows and asset growth over the years. Market appreciation and continued strength in multi-asset and fixed-income products have further supported this trend. A strong brand, consistent investment track record and solid business volumes are expected to keep supporting AUM growth in the upcoming period.
At T. Rowe Price, organic growth remains a key contributor to revenue momentum. The company's efforts to enhance investment capabilities, broaden distribution reach and introduce new products are expected to support client engagement and asset gathering. As TROW continues to expand its alternative investment and retirement offerings, its revenue base is likely to remain supported by a diversified mix of fee-generating assets.
Further, T. Rowe Price exhibits a strong liquidity position. As of March 31, 2026, the company held $6.89 billion in liquid assets, including cash and cash equivalents as well as investments, compared with total liabilities of $2.52 billion. The company's solid liquidity profile is expected to support strategic investments and business growth initiatives going forward.
The Case for LAZ
Lazard has also been expanding its platform through acquisitions and partnerships. In May 2026, the company announced the acquisition of Campbell Lutyens, strengthening its private capital advisory capabilities and expanding its reach across institutional investors and financial sponsors. Earlier in 2025, Lazard formed an alliance with Arini Capital Management, enhancing its private credit capabilities.
Building on these initiatives, Lazard has witnessed steady growth in its AUM balance over the years. The company's efforts to expand its asset-management platform through acquisitions and private-market initiatives have supported asset growth, while strong client engagement and demand across investment strategies have remained encouraging. Driven by these factors and favorable industry dynamics, the company's AUM balance is expected to continue growing in the coming quarters.
Organic growth also remains a key strength at Lazard, as reflected in its revenue growth trend. The company's diversified asset-management and advisory businesses provide multiple avenues for revenue generation. Continued strength in asset management, supported by a growing AUM base, and a recovery in deal-making activity are expected to drive top-line growth. Further, management's ongoing efforts to expand its private capital and advisory businesses are expected to support revenue momentum and long-term earnings growth.
However, despite benefiting from investment-grade credit ratings and a well-laddered debt maturity profile that provides access to funding at favorable rates, Lazard's liquidity position appears relatively constrained. As of March 31, 2026, the company held cash and cash equivalents of $1.02 billion against senior debt of $1.69 billion.
How Do Estimates Compare for TROW & LAZ?
The Zacks Consensus Estimate for TROW’s 2026 and 2027 revenue suggests year-over-year increases of 3.2% and 2.2%, respectively. Meanwhile, the consensus estimate for earnings suggests declines of 0.9% in 2026 and 0.3% in 2027. Over the past month, earnings estimates for both 2026 and 2027 have been revised upward.
Estimates Revision Trend
Image Source: Zacks Investment Research
The consensus mark for LAZ’s 2026 and 2027 sales suggests year-over-year increases of 11.7% and 22.2%, respectively. Also, the consensus estimate for earnings indicates a 16.8% and 67.8% rise for 2026 and 2027, respectively. Earnings estimates for both years have remained unchanged over the past 30 days.
Estimates Revision Trend
Image Source: Zacks Investment Research
TROW & LAZ: Price Performance & Valuation
Over the past three months, TROW and LAZ shares gained 17.1% and 7.4%, respectively, compared with the S&P 500 Index’s growth of 9.1%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, TROW is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 11.02X, while LAZ is currently trading at a forward 12-month P/E multiple of 12.57X. Here, TROW stock is cheaper than LAZ.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
TROW or LAZ: Which Stock Has Better Potential?
Both T. Rowe Price and Lazard are established asset managers with diversified business models, growing alternative-investment capabilities and expanding private-market franchises. Each company benefits from solid asset-management operations, broad client relationships and strategic initiatives aimed at supporting long-term growth across traditional and alternative asset classes.
However, TROW benefits from a stronger liquidity profile and a more diversified and steadily growing AUM base. The company's expansion across retirement, insurance and alternative-investment solutions, coupled with its strong investment performance and disciplined capital-return strategy, positions it well for sustainable growth.
Although Lazard's earnings and revenue growth estimates appear stronger on paper, much of that growth depends on the successful execution of acquisitions and a sustained recovery in advisory activity, which can be more cyclical and market-dependent.
Additionally, T. Rowe Price trades at a discount to Lazard, offering investors a more attractive valuation while maintaining a stronger balance sheet and established organic-growth drivers. Given its financial strength, diversified business model, expanding retirement and alternatives platform, and compelling valuation, T. Rowe Price appears better positioned to deliver sustainable long-term shareholder value.
At present, T. Rowe Price carries a Zacks Rank #3 (Hold), while Lazard has a Zacks Rank #5 (Strong Sell).
View the Zacks #1 Rank List
Image: Bigstock
T. Rowe Price vs. Lazard: Which Stock Has More Growth Potential?
Key Takeaways
T. Rowe Price Group, Inc. (TROW - Free Report) and Lazard, Inc. (LAZ - Free Report) are well-established investment management firms with broad capabilities across equities, fixed income, multi-asset and alternative investments. While T. Rowe Price primarily focuses on investment management services for individual and institutional clients, Lazard complements its asset-management operations with a leading financial-advisory business. Both firms benefit from diversified client bases and global operating platforms, though differences in their business mix, growth strategies and revenue drivers could influence their future performance.
The asset management industry has been facing pressure from rising technology and artificial intelligence (AI)-related expenses, which may weigh on near-term profitability despite long-term efficiency gains. The ongoing shift toward low-cost passive products continues to compress fees and intensify competition, prompting firms to pursue mergers and partnerships to gain scale. In addition, recent private credit concerns could moderate near-term flows into higher-fee alternative strategies. Nevertheless, steady inflows are supporting growth in assets under management (AUM).
Against this backdrop, investors naturally ask: Which firm, TROW or LAZ, has better potential? To answer that, we need to examine their fundamentals more closely.
The Case for TROW
T. Rowe Price has been strengthening its platform through strategic partnerships and acquisitions. In September 2025, the company partnered with Goldman Sachs (GS - Free Report) to develop public and private market solutions tailored for retirement and wealth investors, with additional retirement-focused offerings expected to launch later in 2026. Earlier in 2025, it partnered with Aspida to manage public and private assets, expanding the company’s presence in insurance asset management. Together, these initiatives have strengthened the company's investment platform and diversified its revenue streams, supporting long-term growth prospects.
Meanwhile, T. Rowe Price’s diversified AUM across various asset classes, client bases and geographies provides stability and supports sustainable earnings. The company's efforts to expand its retirement, insurance and alternative investment capabilities have contributed to favorable asset flows and asset growth over the years. Market appreciation and continued strength in multi-asset and fixed-income products have further supported this trend. A strong brand, consistent investment track record and solid business volumes are expected to keep supporting AUM growth in the upcoming period.
At T. Rowe Price, organic growth remains a key contributor to revenue momentum. The company's efforts to enhance investment capabilities, broaden distribution reach and introduce new products are expected to support client engagement and asset gathering. As TROW continues to expand its alternative investment and retirement offerings, its revenue base is likely to remain supported by a diversified mix of fee-generating assets.
Further, T. Rowe Price exhibits a strong liquidity position. As of March 31, 2026, the company held $6.89 billion in liquid assets, including cash and cash equivalents as well as investments, compared with total liabilities of $2.52 billion. The company's solid liquidity profile is expected to support strategic investments and business growth initiatives going forward.
The Case for LAZ
Lazard has also been expanding its platform through acquisitions and partnerships. In May 2026, the company announced the acquisition of Campbell Lutyens, strengthening its private capital advisory capabilities and expanding its reach across institutional investors and financial sponsors. Earlier in 2025, Lazard formed an alliance with Arini Capital Management, enhancing its private credit capabilities.
Building on these initiatives, Lazard has witnessed steady growth in its AUM balance over the years. The company's efforts to expand its asset-management platform through acquisitions and private-market initiatives have supported asset growth, while strong client engagement and demand across investment strategies have remained encouraging. Driven by these factors and favorable industry dynamics, the company's AUM balance is expected to continue growing in the coming quarters.
Organic growth also remains a key strength at Lazard, as reflected in its revenue growth trend. The company's diversified asset-management and advisory businesses provide multiple avenues for revenue generation. Continued strength in asset management, supported by a growing AUM base, and a recovery in deal-making activity are expected to drive top-line growth. Further, management's ongoing efforts to expand its private capital and advisory businesses are expected to support revenue momentum and long-term earnings growth.
However, despite benefiting from investment-grade credit ratings and a well-laddered debt maturity profile that provides access to funding at favorable rates, Lazard's liquidity position appears relatively constrained. As of March 31, 2026, the company held cash and cash equivalents of $1.02 billion against senior debt of $1.69 billion.
How Do Estimates Compare for TROW & LAZ?
The Zacks Consensus Estimate for TROW’s 2026 and 2027 revenue suggests year-over-year increases of 3.2% and 2.2%, respectively. Meanwhile, the consensus estimate for earnings suggests declines of 0.9% in 2026 and 0.3% in 2027. Over the past month, earnings estimates for both 2026 and 2027 have been revised upward.
Estimates Revision Trend
Image Source: Zacks Investment Research
The consensus mark for LAZ’s 2026 and 2027 sales suggests year-over-year increases of 11.7% and 22.2%, respectively. Also, the consensus estimate for earnings indicates a 16.8% and 67.8% rise for 2026 and 2027, respectively. Earnings estimates for both years have remained unchanged over the past 30 days.
Estimates Revision Trend
Image Source: Zacks Investment Research
TROW & LAZ: Price Performance & Valuation
Over the past three months, TROW and LAZ shares gained 17.1% and 7.4%, respectively, compared with the S&P 500 Index’s growth of 9.1%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, TROW is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 11.02X, while LAZ is currently trading at a forward 12-month P/E multiple of 12.57X. Here, TROW stock is cheaper than LAZ.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
TROW or LAZ: Which Stock Has Better Potential?
Both T. Rowe Price and Lazard are established asset managers with diversified business models, growing alternative-investment capabilities and expanding private-market franchises. Each company benefits from solid asset-management operations, broad client relationships and strategic initiatives aimed at supporting long-term growth across traditional and alternative asset classes.
However, TROW benefits from a stronger liquidity profile and a more diversified and steadily growing AUM base. The company's expansion across retirement, insurance and alternative-investment solutions, coupled with its strong investment performance and disciplined capital-return strategy, positions it well for sustainable growth.
Although Lazard's earnings and revenue growth estimates appear stronger on paper, much of that growth depends on the successful execution of acquisitions and a sustained recovery in advisory activity, which can be more cyclical and market-dependent.
Additionally, T. Rowe Price trades at a discount to Lazard, offering investors a more attractive valuation while maintaining a stronger balance sheet and established organic-growth drivers. Given its financial strength, diversified business model, expanding retirement and alternatives platform, and compelling valuation, T. Rowe Price appears better positioned to deliver sustainable long-term shareholder value.
At present, T. Rowe Price carries a Zacks Rank #3 (Hold), while Lazard has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.