BK vs. BLK, AMP, TROW, STT, NTRS, ARCC, BEN, SEIC, IVZ, and AMG
Should you be buying Bank of New York Mellon stock or one of its competitors? The main competitors of Bank of New York Mellon include BlackRock (BLK), Ameriprise Financial (AMP), T. Rowe Price Group (TROW), State Street (STT), Northern Trust (NTRS), Ares Capital (ARCC), Franklin Resources (BEN), SEI Investments (SEIC), Invesco (IVZ), and Affiliated Managers Group (AMG). These companies are all part of the "asset management & custody banks" industry.
Bank of New York Mellon (NYSE:BK) and BlackRock (NYSE:BLK) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, community ranking, analyst recommendations, media sentiment, profitability, earnings, dividends and risk.
BlackRock has a net margin of 32.26% compared to Bank of New York Mellon's net margin of 9.48%. BlackRock's return on equity of 15.24% beat Bank of New York Mellon's return on equity.
85.3% of Bank of New York Mellon shares are held by institutional investors. Comparatively, 80.7% of BlackRock shares are held by institutional investors. 0.1% of Bank of New York Mellon shares are held by insiders. Comparatively, 0.9% of BlackRock shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds 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 2.9%. BlackRock pays an annual dividend of $20.40 per share and has a dividend yield of 2.6%. Bank of New York Mellon pays out 41.0% of its earnings in the form of a dividend. BlackRock pays out 51.8% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
BlackRock has lower revenue, but higher earnings than Bank of New York Mellon. Bank of New York Mellon is trading at a lower price-to-earnings ratio than BlackRock, indicating that it is currently the more affordable of the two stocks.
Bank of New York Mellon presently has a consensus target price of $60.17, indicating a potential upside of 3.31%. BlackRock has a consensus target price of $845.42, indicating a potential upside of 9.63%. Given BlackRock's stronger consensus rating and higher probable upside, analysts clearly believe BlackRock is more favorable than Bank of New York Mellon.
BlackRock received 214 more outperform votes than Bank of New York Mellon when rated by MarketBeat users. Likewise, 72.71% of users gave BlackRock an outperform vote while only 67.15% of users gave Bank of New York Mellon an outperform vote.
In the previous week, BlackRock had 34 more articles in the media than Bank of New York Mellon. MarketBeat recorded 40 mentions for BlackRock and 6 mentions for Bank of New York Mellon. Bank of New York Mellon's average media sentiment score of 1.45 beat BlackRock's score of 0.65 indicating that Bank of New York Mellon is being referred to more favorably in the media.
Bank of New York Mellon has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, BlackRock has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Summary
BlackRock beats Bank of New York Mellon 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 BK and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This 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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