Northern Trust Corporation (NASDAQ: NTRS) is one of 55 publicly-traded companies in the “Investment Management & Fund Operators” industry, but how does it compare to its competitors? We will compare Northern Trust Corporation to related companies based on the strength of its institutional ownership, valuation, profitability, analyst recommendations, risk, earnings and dividends.
Earnings & Valuation
This table compares Northern Trust Corporation and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Northern Trust Corporation||$5.09 billion||N/A||20.70|
|Northern Trust Corporation Competitors||$2.89 billion||$931.92 million||7.28|
Northern Trust Corporation has higher revenue, but lower earnings than its competitors. Northern Trust Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Insider and Institutional Ownership
81.9% of Northern Trust Corporation shares are held by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 1.3% of Northern Trust Corporation shares are held by insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Northern Trust Corporation has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Northern Trust Corporation’s competitors have a beta of 1.23, suggesting that their average stock price is 23% more volatile than the S&P 500.
This table compares Northern Trust Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Northern Trust Corporation||20.21%||12.08%||0.88%|
|Northern Trust Corporation Competitors||-45.49%||7.49%||4.98%|
This is a summary of current ratings and target prices for Northern Trust Corporation and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Northern Trust Corporation||1||7||3||1||2.33|
|Northern Trust Corporation Competitors||278||1637||1761||57||2.43|
Northern Trust Corporation currently has a consensus price target of $94.42, indicating a potential upside of 3.64%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 7.49%. Given Northern Trust Corporation’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Northern Trust Corporation has less favorable growth aspects than its competitors.
Northern Trust Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 1.8%. Northern Trust Corporation pays out 38.2% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.6% and pay out 49.3% of their earnings in the form of a dividend.
About Northern Trust Corporation
Northern Trust Corporation is a financial holding company. The Company provides asset servicing, fund administration, asset management, fiduciary and banking solutions for corporations, institutions, families and individuals across the world. Its segments include Corporate & Institutional Services (C&IS), Wealth Management, and Treasury and Other. The C&IS segment is a provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds and other institutional investors around the globe. The Wealth Management segment provides trust, investment management, custody and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services, and private and business banking. It conducts its business through various subsidiaries.
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