State Street (NYSE:STT) and Jones Lang LaSalle (NYSE:JLL) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Valuation and Earnings
This table compares State Street and Jones Lang LaSalle's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| State Street | $13.13 billion | 1.94 | $2.24 billion | $6.17 | 11.71 |
| Jones Lang LaSalle | $17.98 billion | 0.39 | $535.30 million | $14.09 | 9.74 |
State Street has higher earnings, but lower revenue than Jones Lang LaSalle. Jones Lang LaSalle is trading at a lower price-to-earnings ratio than State Street, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
90.3% of State Street shares are owned by institutional investors. Comparatively, 94.4% of Jones Lang LaSalle shares are owned by institutional investors. 0.3% of State Street shares are owned by insiders. Comparatively, 0.6% of Jones Lang LaSalle shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and target prices for State Street and Jones Lang LaSalle, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| State Street | 1 | 7 | 7 | 0 | 2.40 |
| Jones Lang LaSalle | 1 | 1 | 3 | 0 | 2.40 |
State Street presently has a consensus target price of $75.3333, indicating a potential upside of 4.28%. Jones Lang LaSalle has a consensus target price of $138.60, indicating a potential upside of 0.98%. Given State Street's higher possible upside, equities research analysts plainly believe State Street is more favorable than Jones Lang LaSalle.
Profitability
This table compares State Street and Jones Lang LaSalle's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| State Street | 20.75% | 12.24% | 0.93% |
| Jones Lang LaSalle | 2.49% | 10.70% | 4.07% |
Volatility & Risk
State Street has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Jones Lang LaSalle has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.
Summary
State Street beats Jones Lang LaSalle on 7 of the 13 factors compared between the two stocks.
