STT vs. NTRS, BK, MTB, FCNCA, FITB, CFG, ALLY, DB, EWBC, and CBSH
Should you be buying State Street stock or one of its competitors? The main competitors of State Street include Northern Trust (NTRS), Bank of New York Mellon (BK), M&T Bank (MTB), First Citizens BancShares (FCNCA), Fifth Third Bancorp (FITB), Citizens Financial Group (CFG), Ally Financial (ALLY), Deutsche Bank Aktiengesellschaft (DB), East West Bancorp (EWBC), 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 better investment? We will contrast the two companies based on the strength of their analyst recommendations, community ranking, institutional ownership, media sentiment, earnings, dividends, profitability, valuation and risk.
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 1.52, meaning that its share price is 52% more volatile than the S&P 500.
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 has a net margin of 9.62% compared to State Street's net margin of 7.59%. State Street's return on equity of 12.57% beat Northern Trust'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.
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 has raised its dividend for 12 consecutive years. State Street is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, State Street had 4 more articles in the media than Northern Trust. MarketBeat recorded 14 mentions for State Street and 10 mentions for Northern Trust. State Street's average media sentiment score of 1.16 beat Northern Trust's score of 0.45 indicating that Northern Trust is being referred to more favorably in the media.
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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Northern Trust currently has a consensus price target of $84.92, indicating a potential upside of 2.88%. State Street has a consensus price target of $84.04, indicating a potential upside of 15.69%. Given Northern Trust's stronger consensus rating and higher probable upside, analysts clearly believe State Street is more favorable than Northern Trust.
Summary
State Street beats Northern Trust on 15 of the 21 factors compared between the two stocks.
Get State Street News Delivered to You Automatically
Sign up to receive the latest news and ratings for STT and its competitors with MarketBeat's FREE daily newsletter.
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.
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.
State Street Competitors List
Related Companies and Tools
