BEN vs. BK, AMP, TROW, STT, NTRS, ARCC, SEIC, IVZ, AMG, and MAIN
Should you be buying Franklin Resources stock or one of its competitors? The main competitors of Franklin Resources include Bank of New York Mellon (BK), Ameriprise Financial (AMP), T. Rowe Price Group (TROW), State Street (STT), Northern Trust (NTRS), Ares Capital (ARCC), SEI Investments (SEIC), Invesco (IVZ), Affiliated Managers Group (AMG), and Main Street Capital (MAIN). These companies are all part of the "asset management & custody banks" industry.
Bank of New York Mellon (NYSE:BK) and Franklin Resources (NYSE:BEN) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, community ranking, profitability, risk, analyst recommendations, dividends and media sentiment.
Bank of New York Mellon has higher revenue and earnings than Franklin Resources. Franklin Resources is trading at a lower price-to-earnings ratio than Bank of New York Mellon, indicating that it is currently the more affordable of the two stocks.
Bank of New York Mellon received 434 more outperform votes than Franklin Resources when rated by MarketBeat users. Likewise, 67.15% of users gave Bank of New York Mellon an outperform vote while only 40.78% of users gave Franklin Resources an outperform vote.
Franklin Resources has a net margin of 11.09% compared to Franklin Resources' net margin of 9.48%. Franklin Resources' return on equity of 11.80% beat Bank of New York Mellon's return on equity.
Bank of New York Mellon currently has a consensus price target of $60.17, indicating a potential upside of 0.93%. Franklin Resources has a consensus price target of $26.00, indicating a potential upside of 10.17%. Given Bank of New York Mellon's higher probable upside, analysts clearly believe Franklin Resources is more favorable than Bank of New York Mellon.
Bank of New York Mellon has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Franklin Resources has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.
In the previous week, Franklin Resources had 1 more articles in the media than Bank of New York Mellon. MarketBeat recorded 7 mentions for Franklin Resources and 6 mentions for Bank of New York Mellon. Franklin Resources' average media sentiment score of 1.42 beat Bank of New York Mellon's score of 1.03 indicating that Bank of New York Mellon is being referred to more favorably in the media.
85.3% of Bank of New York Mellon shares are owned by institutional investors. Comparatively, 47.6% of Franklin Resources shares are owned by institutional investors. 0.1% of Bank of New York Mellon shares are owned by company insiders. Comparatively, 24.1% of Franklin Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Bank of New York Mellon pays an annual dividend of $1.68 per share and has a dividend yield of 2.8%. Franklin Resources pays an annual dividend of $1.24 per share and has a dividend yield of 5.3%. Bank of New York Mellon pays out 41.0% of its earnings in the form of a dividend. Franklin Resources pays out 70.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bank of New York Mellon has raised its dividend for 13 consecutive years and Franklin Resources has raised its dividend for 1 consecutive years.
Summary
Bank of New York Mellon beats Franklin Resources on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BEN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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