NTRS vs. STT, BK, CFG, ALLY, EWBC, BBDO, FCNCA, MTB, FITB, and CBSH
Should you be buying Northern Trust stock or one of its competitors? The main competitors of Northern Trust include State Street (STT), Bank of New York Mellon (BK), Citizens Financial Group (CFG), Ally Financial (ALLY), East West Bancorp (EWBC), Banco Bradesco (BBDO), First Citizens BancShares (FCNCA), M&T Bank (MTB), Fifth Third Bancorp (FITB), and Commerce Bancshares (CBSH). These companies are all part of the "state commercial banks" industry.
Northern Trust (NASDAQ:NTRS) and State Street (NYSE:STT) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, media sentiment, community ranking, dividends and earnings.
Northern Trust pays an annual dividend of $3.00 per share and has a dividend yield of 3.5%. State Street pays an annual dividend of $2.76 per share and has a dividend yield of 3.5%. Northern Trust pays out 66.2% 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. State Street is clearly the better dividend stock, given its higher yield and lower payout ratio.
83.2% of Northern Trust shares are held by institutional investors. Comparatively, 87.4% of State Street shares are held by institutional investors. 0.6% of Northern Trust shares are held by insiders. Comparatively, 0.3% of State Street shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
State Street has higher revenue and earnings than Northern Trust. State Street is trading at a lower price-to-earnings ratio than Northern Trust, indicating that it is currently the more affordable of the two stocks.
State Street received 269 more outperform votes than Northern Trust when rated by MarketBeat users. Likewise, 56.50% of users gave State Street an outperform vote while only 41.79% of users gave Northern Trust an outperform vote.
Northern Trust presently has a consensus target price of $84.92, indicating a potential downside of 0.69%. State Street has a consensus target price of $84.04, indicating a potential upside of 7.73%. Given State Street's stronger consensus rating and higher probable upside, analysts clearly believe State Street is more favorable than Northern Trust.
In the previous week, State Street had 2 more articles in the media than Northern Trust. MarketBeat recorded 13 mentions for State Street and 11 mentions for Northern Trust. State Street's average media sentiment score of 1.11 beat Northern Trust's score of 1.05 indicating that State Street is being referred to more favorably in the news media.
State Street has a net margin of 9.62% compared to Northern Trust's net margin of 7.59%. Northern Trust's return on equity of 12.57% beat State Street's return on equity.
Northern Trust has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, State Street has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.
Summary
State Street beats Northern Trust on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NTRS 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 NASDAQ 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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