STT vs. BK, AMP, TROW, NTRS, ARCC, BEN, SEIC, IVZ, AMG, and MAIN
Should you be buying State Street stock or one of its competitors? The main competitors of State Street include Bank of New York Mellon (BK), Ameriprise Financial (AMP), T. Rowe Price Group (TROW), Northern Trust (NTRS), Ares Capital (ARCC), Franklin Resources (BEN), SEI Investments (SEIC), Invesco (IVZ), Affiliated Managers Group (AMG), and Main Street Capital (MAIN). These companies are all part of the "asset management & custody banks" industry.
Bank of New York Mellon (NYSE:BK) and State Street (NYSE:STT) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, media sentiment, community ranking, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.
Bank of New York Mellon presently has a consensus price target of $65.23, indicating a potential downside of 0.19%. State Street has a consensus price target of $88.96, indicating a potential upside of 4.31%. Given Bank of New York Mellon's higher probable upside, analysts plainly believe State Street is more favorable than Bank of New York Mellon.
85.3% of Bank of New York Mellon shares are held by institutional investors. Comparatively, 87.4% of State Street shares are held by institutional investors. 0.1% of Bank of New York Mellon shares are held by company insiders. Comparatively, 0.3% of State Street shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Bank of New York Mellon has a net margin of 9.40% compared to Bank of New York Mellon's net margin of 8.98%. State Street's return on equity of 11.87% beat Bank of New York Mellon's return on equity.
In the previous week, State Street had 7 more articles in the media than Bank of New York Mellon. MarketBeat recorded 20 mentions for State Street and 13 mentions for Bank of New York Mellon. State Street's average media sentiment score of 0.80 beat Bank of New York Mellon's score of 0.47 indicating that Bank of New York Mellon is being referred to more favorably in the media.
Bank of New York Mellon received 218 more outperform votes than State Street when rated by MarketBeat users. Likewise, 66.97% of users gave Bank of New York Mellon an outperform vote while only 56.20% of users gave State Street an outperform vote.
Bank of New York Mellon has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, State Street has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.
Bank of New York Mellon pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. State Street pays an annual dividend of $2.76 per share and has a dividend yield of 3.2%. Bank of New York Mellon pays out 43.5% 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. Bank of New York Mellon has raised its dividend for 14 consecutive years and State Street has raised its dividend for 12 consecutive years.
Bank of New York Mellon has higher revenue and earnings than State Street. Bank of New York Mellon is trading at a lower price-to-earnings ratio than State Street, indicating that it is currently the more affordable of the two stocks.
Summary
Bank of New York Mellon beats State Street on 13 of the 21 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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