STT vs. BK, AMP, TROW, NTRS, ARCC, BEN, SEIC, IVZ, AMG, and MAIN
Should you be buying State Street stock or one of its competitors? The main competitors of State Street include Bank of New York Mellon (BK), Ameriprise Financial (AMP), T. Rowe Price Group (TROW), Northern Trust (NTRS), Ares Capital (ARCC), Franklin Resources (BEN), 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 State Street (NYSE:STT) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their community ranking, analyst recommendations, media sentiment, earnings, institutional ownership, valuation, profitability, risk and dividends.
Bank of New York Mellon received 220 more outperform votes than State Street when rated by MarketBeat users. Likewise, 67.15% of users gave Bank of New York Mellon an outperform vote while only 56.50% of users gave State Street an outperform vote.
Bank of New York Mellon currently has a consensus price target of $60.17, suggesting a potential downside of 0.24%. State Street has a consensus price target of $84.04, suggesting a potential upside of 12.41%. Given Bank of New York Mellon's higher possible upside, analysts clearly believe State Street is more favorable than Bank of New York Mellon.
Bank of New York Mellon has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, State Street has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.
Bank of New York Mellon has higher revenue and earnings than State Street. State Street 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.
State Street has a net margin of 9.62% compared to State Street's net margin of 9.48%. Bank of New York Mellon's return on equity of 12.03% beat State Street's return on equity.
In the previous week, Bank of New York Mellon had 4 more articles in the media than State Street. MarketBeat recorded 14 mentions for Bank of New York Mellon and 10 mentions for State Street. Bank of New York Mellon's average media sentiment score of 1.30 beat State Street's score of 0.74 indicating that State Street is being referred to more favorably in the news media.
Bank of New York Mellon pays an annual dividend of $1.68 per share and has a dividend yield of 2.8%. State Street pays an annual dividend of $2.76 per share and has a dividend yield of 3.7%. Bank of New York Mellon pays out 41.0% of its earnings in the form of a dividend. State Street pays out 51.7% 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.
85.3% of Bank of New York Mellon shares are owned by institutional investors. Comparatively, 87.4% of State Street shares are owned by institutional investors. 0.1% of Bank of New York Mellon shares are owned by insiders. Comparatively, 0.3% of State Street shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Bank of New York Mellon beats State Street on 10 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding STT 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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