STT vs. NTRS, BK, MTB, FCNCA, FITB, CFG, ALLY, EWBC, DB, 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), East West Bancorp (EWBC), Deutsche Bank Aktiengesellschaft (DB), and Commerce Bancshares (CBSH). These companies are all part of the "state commercial banks" industry.
State Street (NYSE:STT) and Northern Trust (NASDAQ:NTRS) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, media sentiment, risk, earnings, analyst recommendations, dividends, community ranking and institutional ownership.
State Street currently has a consensus price target of $84.04, indicating a potential upside of 11.58%. Northern Trust has a consensus price target of $84.92, indicating a potential downside of 0.82%. Given State Street's stronger consensus rating and higher possible upside, research analysts clearly believe State Street is more favorable than Northern Trust.
87.4% of State Street shares are owned by institutional investors. Comparatively, 83.2% of Northern Trust shares are owned by institutional investors. 0.3% of State Street shares are owned by company insiders. Comparatively, 0.6% of Northern Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
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 pays an annual dividend of $2.76 per share and has a dividend yield of 3.7%. Northern Trust pays an annual dividend of $3.00 per share and has a dividend yield of 3.5%. State Street pays out 51.7% of its earnings in the form of a dividend. Northern Trust pays out 66.2% 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.
In the previous week, State Street had 4 more articles in the media than Northern Trust. MarketBeat recorded 18 mentions for State Street and 14 mentions for Northern Trust. Northern Trust's average media sentiment score of 0.83 beat State Street's score of 0.60 indicating that Northern Trust is being referred to more favorably in the news media.
State Street has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Northern Trust has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.
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.
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 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.
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