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.
State Street (NYSE:STT) and Northern Trust (NASDAQ:NTRS) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their media sentiment, risk, institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and community ranking.
In the previous week, State Street had 1 more articles in the media than Northern Trust. MarketBeat recorded 15 mentions for State Street and 14 mentions for Northern Trust. State Street's average media sentiment score of 0.98 beat Northern Trust's score of 0.48 indicating that Northern Trust is being referred to more favorably in the news media.
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 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.
87.4% of State Street shares are held by institutional investors. Comparatively, 83.2% of Northern Trust shares are held by institutional investors. 0.3% of State Street shares are held by company insiders. Comparatively, 0.6% of Northern Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
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.
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 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 presently has a consensus target price of $84.04, indicating a potential upside of 12.97%. Northern Trust has a consensus target price of $84.92, indicating a potential upside of 0.35%. Given Northern Trust's stronger consensus rating and higher probable upside, research analysts plainly 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.
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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.
This 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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