The Bank of New York Mellon (NYSE:BK) and SLR Senior Investment (NASDAQ:SUNS) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.
Earnings & Valuation
This table compares The Bank of New York Mellon and SLR Senior Investment's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| The Bank of New York Mellon | $20.77 billion | 2.15 | $4.44 billion | $4.02 | 12.69 |
| SLR Senior Investment | $40.09 million | 5.90 | $22.94 million | $1.41 | 10.45 |
The Bank of New York Mellon has higher revenue and earnings than SLR Senior Investment. SLR Senior Investment is trading at a lower price-to-earnings ratio than The Bank of New York Mellon, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares The Bank of New York Mellon and SLR Senior Investment's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| The Bank of New York Mellon | 23.09% | 9.89% | 0.89% |
| SLR Senior Investment | 37.91% | 8.50% | 3.86% |
Dividends
The Bank of New York Mellon pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. SLR Senior Investment pays an annual dividend of $1.20 per share and has a dividend yield of 8.1%. The Bank of New York Mellon pays out 30.8% of its earnings in the form of a dividend. SLR Senior Investment pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The Bank of New York Mellon has raised its dividend for 1 consecutive years and SLR Senior Investment has raised its dividend for 1 consecutive years.
Institutional & Insider Ownership
82.3% of The Bank of New York Mellon shares are owned by institutional investors. Comparatively, 16.0% of SLR Senior Investment shares are owned by institutional investors. 0.1% of The Bank of New York Mellon shares are owned by company insiders. Comparatively, 5.7% of SLR Senior Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations for The Bank of New York Mellon and SLR Senior Investment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| The Bank of New York Mellon | 0 | 5 | 10 | 0 | 2.67 |
| SLR Senior Investment | 0 | 1 | 2 | 0 | 2.67 |
The Bank of New York Mellon presently has a consensus target price of $49.80, suggesting a potential downside of 2.41%. SLR Senior Investment has a consensus target price of $17.50, suggesting a potential upside of 18.72%. Given SLR Senior Investment's higher probable upside, analysts clearly believe SLR Senior Investment is more favorable than The Bank of New York Mellon.
Risk and Volatility
The Bank of New York Mellon has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, SLR Senior Investment has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.
Summary
SLR Senior Investment beats The Bank of New York Mellon on 8 of the 15 factors compared between the two stocks.
