NTRS vs. STT, BK, CFG, ALLY, EWBC, MTB, FCNCA, FITB, CBSH, and WAL
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), M&T Bank (MTB), First Citizens BancShares (FCNCA), Fifth Third Bancorp (FITB), Commerce Bancshares (CBSH), and Western Alliance Bancorporation (WAL). 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 investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk, community ranking, media sentiment and profitability.
Northern Trust pays an annual dividend of $3.00 per share and has a dividend yield of 3.6%. State Street pays an annual dividend of $2.76 per share and has a dividend yield of 3.8%. 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.
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.
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.
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.
In the previous week, State Street had 4 more articles in the media than Northern Trust. MarketBeat recorded 13 mentions for State Street and 9 mentions for Northern Trust. Northern Trust's average media sentiment score of 1.31 beat State Street's score of 0.54 indicating that Northern Trust is being referred to more favorably in the media.
83.2% of Northern Trust shares are owned by institutional investors. Comparatively, 87.4% of State Street shares are owned by institutional investors. 0.6% of Northern Trust shares are owned by insiders. Comparatively, 0.3% of State Street shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Northern Trust has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, State Street has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.
Northern Trust currently has a consensus target price of $84.92, indicating a potential upside of 2.72%. State Street has a consensus target price of $84.04, indicating a potential upside of 15.06%. Given State Street's stronger consensus rating and higher possible upside, analysts plainly believe State Street is more favorable than Northern Trust.
Summary
State Street beats Northern Trust on 14 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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