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Franklin vs. Lazard: Which Stock Has Better Growth Prospects?
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Key Takeaways
BEN's AUM growth is fueled by strong inflows, private markets and alternative investment expansion.
LAZ recorded $7.4 billion of net inflows in the first half of 2026, its strongest in nearly 20 years.
BEN trades at 1.3X P/B versus 4.4X for LAZ, while LAZ offers a higher 5.6% dividend yield.
Franklin Templeton, Inc. (BEN - Free Report) and Lazard, Inc. (LAZ - Free Report) are prominent global financial services firms with diversified platforms spanning asset management and investment-related services. Both companies benefit from broad client bases, global operating footprints and expanding investment capabilities. However, their business models and strategic priorities differ, with BEN having a broader asset management platform across equity, fixed income, alternatives, multi-asset and cash management strategies, while LAZ generates a significant portion of its revenues from financial advisory services.
Let us take a closer look at the growth drivers, business mix and financial outlook of BEN and LAZ to determine which stock offers better long-term upside potential.
The Case for BEN
Franklin has been expanding and diversifying its investment platform through strategic acquisitions and partnerships. In September 2026, its real estate investment arm, Clarion Partners, agreed to acquire a majority stake in Stoneshield Capital, adding $9 billion in assets under management (AUM) and strengthening its European real estate and infrastructure capabilities. The deal is expected to lift Franklin’s alternatives AUM above $300 billion. Earlier, the company acquired 250 Digital and launched Franklin Crypto to expand its digital-asset capabilities, while the acquisition of Apera Asset Management strengthened its alternative credit platform. These initiatives, along with partnerships across private infrastructure, tokenization and digital assets, have broadened BEN’s investment capabilities and strengthened its position across high-growth alternative asset classes.
Supported by this broader investment platform, Franklin’s AUM has continued to grow. In the third quarter of fiscal 2026, AUM reached a record $1.8 trillion. The increase was driven by strong inflows across asset classes, robust growth in private markets and alternatives and favorable international flows. The company’s continued focus on alternative investments is also helping diversify its business mix and increase exposure to asset classes benefiting from growing client demand. Record alternative AUM, solid private-market fundraising and a broad distribution network are expected to support further AUM growth and strengthen its long-term growth prospects.
Organic growth remains another key strength for BEN. Strong inflows into ETFs, separately managed accounts and private-market offerings, along with a healthy institutional pipeline, have supported revenue growth. The company’s broad distribution platform and established presence across international markets have further helped drive client flows. Going forward, continued diversification across alternatives, multi-asset solutions and digital assets, combined with favorable international flows, is expected to broaden the revenue base.
The Zacks Consensus Estimate for fiscal 2026 and fiscal 2027 revenues is pegged at $9.4 billion and $9.7 billion, respectively, indicating year-over-year growth of 6.6% and 3.5%, respectively.
BEN Revenue Estimates
Image Source: Zacks Investment Research
However, Franklin’s rising expense base remains a concern. Higher compensation, distribution and general and administrative expenses have kept costs elevated, while investments in technology, fundraising and specialist investment platforms are adding to spending. The company expects the Apera acquisition to add $30 million in expenses in fiscal 2026, although planned efficiency savings are expected to offset these costs. Continued investment and integration expenses could weigh on near-term profitability even as the company expands its higher-growth businesses.
The Case for LAZ
Lazard has been strengthening its platform through strategic acquisitions and partnerships, with a focus on expanding its financial advisory and private markets capabilities. In April 2026, the company entered into an agreement to acquire Campbell Lutyens, strengthening its private capital advisory business and expanding its global private markets platform. The deal is expected to be earnings accretive in 2027. Earlier, LAZ formed a strategic alliance with Arini Capital Management to expand its access to private capital solutions across Europe, particularly in direct lending across the EMEA region. Together, these initiatives have broadened Lazard’s advisory and investment offerings, strengthened its private markets platform and created additional avenues for long-term growth.
Building on these initiatives, LAZ’s AUM has continued to expand, supported by its diversified Asset Management platform and broad client base. The company recorded positive net flows of $7.4 billion in the first half of 2026, its strongest first-half inflow performance in nearly 20 years. Client demand has remained broad across quantitative strategies, emerging markets, Japanese and international equities, fixed income and private markets. Further, the addition of assets through the Truvvo Partners and Elaia transactions, along with the expansion of its private markets capabilities, is expected to support future AUM growth. Continued demand across its investment strategies should further support the Asset Management business.
Meanwhile, the company’s diversified business mix provides multiple avenues for organic growth. Improving deal-making activity is expected to support Financial Advisory revenues, while the diversified AUM mix in Asset Management is poised to drive overall revenue growth. Lazard is targeting a doubling of revenues by 2030, supported by the continued expansion of its Financial Advisory and Asset Management businesses. The Campbell Lutyens acquisition is expected to further strengthen its private capital advisory capabilities and provide an additional avenue for revenue growth over the longer term.
The Zacks Consensus Estimate for 2026 and 2027 revenues is pegged at $3.3 billion and $4.1 billion, respectively, indicating year-over-year growth of 9.2% and 22.3%, respectively.
LAZ Revenue Estimates
Image Source: Zacks Investment Research
On the cost front, Lazard has been making efforts to reduce expenses and improve operating efficiency while continuing to invest in growth. Its Lazard 2030 initiatives focus on cost savings, moderated hiring and productivity improvements, while greater use of artificial intelligence across research, portfolio construction, client servicing and internal processes is expected to further enhance efficiency. Management is targeting a compensation ratio of 60% or below and a non-compensation ratio of 16-20% over the near term. These cost-management initiatives, combined with operating leverage from revenue growth, are expected to support profitability over time.
How Do Earnings Estimates Compare for BEN & LAZ?
The Zacks Consensus Estimate for BEN’s fiscal 2026 and fiscal 2027 earnings implies year-over-year increases of 30.2% and 10.9%, respectively. Earnings estimates for both fiscal 2026 and 2027 have been revised upward over the past 60 days.
BEN Estimates Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LAZ’s 2026 earnings implies a year-over-year decline of 10.7%, while the same for 2027 earnings implies a year-over-year increase of 83.6%. Earnings estimates for both years have been revised downward over the past two months.
LAZ Estimates Revision Trend
Image Source: Zacks Investment Research
BEN & LAZ: Price Performance, Valuations & Other Comparisons
Over the past six months, BEN shares gained 42.6%, while LAZ shares plunged 11.3%. In the same time frame, the industry reported growth of 10.8%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, BEN’s trailing 12-month price-to-book (P/B) ratio is 1.3X, while LAZ has a trailing P/B ratio of 4.4X. This indicates that LAZ shares are trading at a premium to BEN shares.
Price-to-Book TTM
Image Source: Zacks Investment Research
Meanwhile, both Lazard and Franklin reward their shareholders through dividends. In July 2022, LAZ increased its quarterly common dividend by 6% and has kept the payment steady since then. It has a dividend yield of 5.6%. Similarly, BEN announced a 3.1% hike in its common stock dividend in December 2025. It has a dividend yield of 4.0%.
Dividend Yield
Image Source: Zacks Investment Research
BEN or LAZ: Which Stock Offers More Value?
Franklin and Lazard both benefit from diversified financial-services platforms, broad client bases and expanding investment capabilities. Both companies are also pursuing strategic acquisitions and partnerships to strengthen their businesses and support long-term growth.
However, BEN appears better positioned based on its stronger earnings growth outlook, positive estimate revisions, recent share-price performance and lower valuation. While LAZ offers a higher dividend yield and continues to expand its Asset Management and Financial Advisory businesses, its earnings estimates have been revised downward and its shares trade at a higher price-to-book multiple.
Therefore, BEN appears to have an edge over LAZ, backed by its stronger earnings outlook and more attractive valuation.
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Franklin vs. Lazard: Which Stock Has Better Growth Prospects?
Key Takeaways
Franklin Templeton, Inc. (BEN - Free Report) and Lazard, Inc. (LAZ - Free Report) are prominent global financial services firms with diversified platforms spanning asset management and investment-related services. Both companies benefit from broad client bases, global operating footprints and expanding investment capabilities. However, their business models and strategic priorities differ, with BEN having a broader asset management platform across equity, fixed income, alternatives, multi-asset and cash management strategies, while LAZ generates a significant portion of its revenues from financial advisory services.
Let us take a closer look at the growth drivers, business mix and financial outlook of BEN and LAZ to determine which stock offers better long-term upside potential.
The Case for BEN
Franklin has been expanding and diversifying its investment platform through strategic acquisitions and partnerships. In September 2026, its real estate investment arm, Clarion Partners, agreed to acquire a majority stake in Stoneshield Capital, adding $9 billion in assets under management (AUM) and strengthening its European real estate and infrastructure capabilities. The deal is expected to lift Franklin’s alternatives AUM above $300 billion. Earlier, the company acquired 250 Digital and launched Franklin Crypto to expand its digital-asset capabilities, while the acquisition of Apera Asset Management strengthened its alternative credit platform. These initiatives, along with partnerships across private infrastructure, tokenization and digital assets, have broadened BEN’s investment capabilities and strengthened its position across high-growth alternative asset classes.
Supported by this broader investment platform, Franklin’s AUM has continued to grow. In the third quarter of fiscal 2026, AUM reached a record $1.8 trillion. The increase was driven by strong inflows across asset classes, robust growth in private markets and alternatives and favorable international flows. The company’s continued focus on alternative investments is also helping diversify its business mix and increase exposure to asset classes benefiting from growing client demand. Record alternative AUM, solid private-market fundraising and a broad distribution network are expected to support further AUM growth and strengthen its long-term growth prospects.
Organic growth remains another key strength for BEN. Strong inflows into ETFs, separately managed accounts and private-market offerings, along with a healthy institutional pipeline, have supported revenue growth. The company’s broad distribution platform and established presence across international markets have further helped drive client flows. Going forward, continued diversification across alternatives, multi-asset solutions and digital assets, combined with favorable international flows, is expected to broaden the revenue base.
The Zacks Consensus Estimate for fiscal 2026 and fiscal 2027 revenues is pegged at $9.4 billion and $9.7 billion, respectively, indicating year-over-year growth of 6.6% and 3.5%, respectively.
BEN Revenue Estimates
Image Source: Zacks Investment Research
However, Franklin’s rising expense base remains a concern. Higher compensation, distribution and general and administrative expenses have kept costs elevated, while investments in technology, fundraising and specialist investment platforms are adding to spending. The company expects the Apera acquisition to add $30 million in expenses in fiscal 2026, although planned efficiency savings are expected to offset these costs. Continued investment and integration expenses could weigh on near-term profitability even as the company expands its higher-growth businesses.
The Case for LAZ
Lazard has been strengthening its platform through strategic acquisitions and partnerships, with a focus on expanding its financial advisory and private markets capabilities. In April 2026, the company entered into an agreement to acquire Campbell Lutyens, strengthening its private capital advisory business and expanding its global private markets platform. The deal is expected to be earnings accretive in 2027. Earlier, LAZ formed a strategic alliance with Arini Capital Management to expand its access to private capital solutions across Europe, particularly in direct lending across the EMEA region. Together, these initiatives have broadened Lazard’s advisory and investment offerings, strengthened its private markets platform and created additional avenues for long-term growth.
Building on these initiatives, LAZ’s AUM has continued to expand, supported by its diversified Asset Management platform and broad client base. The company recorded positive net flows of $7.4 billion in the first half of 2026, its strongest first-half inflow performance in nearly 20 years. Client demand has remained broad across quantitative strategies, emerging markets, Japanese and international equities, fixed income and private markets. Further, the addition of assets through the Truvvo Partners and Elaia transactions, along with the expansion of its private markets capabilities, is expected to support future AUM growth. Continued demand across its investment strategies should further support the Asset Management business.
Meanwhile, the company’s diversified business mix provides multiple avenues for organic growth. Improving deal-making activity is expected to support Financial Advisory revenues, while the diversified AUM mix in Asset Management is poised to drive overall revenue growth. Lazard is targeting a doubling of revenues by 2030, supported by the continued expansion of its Financial Advisory and Asset Management businesses. The Campbell Lutyens acquisition is expected to further strengthen its private capital advisory capabilities and provide an additional avenue for revenue growth over the longer term.
The Zacks Consensus Estimate for 2026 and 2027 revenues is pegged at $3.3 billion and $4.1 billion, respectively, indicating year-over-year growth of 9.2% and 22.3%, respectively.
LAZ Revenue Estimates
Image Source: Zacks Investment Research
On the cost front, Lazard has been making efforts to reduce expenses and improve operating efficiency while continuing to invest in growth. Its Lazard 2030 initiatives focus on cost savings, moderated hiring and productivity improvements, while greater use of artificial intelligence across research, portfolio construction, client servicing and internal processes is expected to further enhance efficiency. Management is targeting a compensation ratio of 60% or below and a non-compensation ratio of 16-20% over the near term. These cost-management initiatives, combined with operating leverage from revenue growth, are expected to support profitability over time.
How Do Earnings Estimates Compare for BEN & LAZ?
The Zacks Consensus Estimate for BEN’s fiscal 2026 and fiscal 2027 earnings implies year-over-year increases of 30.2% and 10.9%, respectively. Earnings estimates for both fiscal 2026 and 2027 have been revised upward over the past 60 days.
BEN Estimates Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LAZ’s 2026 earnings implies a year-over-year decline of 10.7%, while the same for 2027 earnings implies a year-over-year increase of 83.6%. Earnings estimates for both years have been revised downward over the past two months.
LAZ Estimates Revision Trend
Image Source: Zacks Investment Research
BEN & LAZ: Price Performance, Valuations & Other Comparisons
Over the past six months, BEN shares gained 42.6%, while LAZ shares plunged 11.3%. In the same time frame, the industry reported growth of 10.8%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, BEN’s trailing 12-month price-to-book (P/B) ratio is 1.3X, while LAZ has a trailing P/B ratio of 4.4X. This indicates that LAZ shares are trading at a premium to BEN shares.
Price-to-Book TTM
Image Source: Zacks Investment Research
Meanwhile, both Lazard and Franklin reward their shareholders through dividends. In July 2022, LAZ increased its quarterly common dividend by 6% and has kept the payment steady since then. It has a dividend yield of 5.6%. Similarly, BEN announced a 3.1% hike in its common stock dividend in December 2025. It has a dividend yield of 4.0%.
Dividend Yield
Image Source: Zacks Investment Research
BEN or LAZ: Which Stock Offers More Value?
Franklin and Lazard both benefit from diversified financial-services platforms, broad client bases and expanding investment capabilities. Both companies are also pursuing strategic acquisitions and partnerships to strengthen their businesses and support long-term growth.
However, BEN appears better positioned based on its stronger earnings growth outlook, positive estimate revisions, recent share-price performance and lower valuation. While LAZ offers a higher dividend yield and continues to expand its Asset Management and Financial Advisory businesses, its earnings estimates have been revised downward and its shares trade at a higher price-to-book multiple.
Therefore, BEN appears to have an edge over LAZ, backed by its stronger earnings outlook and more attractive valuation.
Currently, BEN carries a Zacks Rank #2 (Buy), while LAZ carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.