Comparing Northern Trust (NTRS) & Its Competitors

Northern Trust (NASDAQ:NTRS) is one of 1,743 publicly-traded companies in the “Capital Markets” industry, but how does it weigh in compared to its rivals? We will compare Northern Trust to similar businesses based on the strength of its dividends, analyst recommendations, profitability, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Northern Trust and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Trust	15.86%	17.97%	1.27%
Northern Trust Competitors	317.76%	10.36%	3.68%

Analyst Ratings

This is a summary of current ratings and price targets for Northern Trust and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Trust	2	11	2	0	2.00
Northern Trust Competitors	5574	20169	22516	647	2.37

Northern Trust currently has a consensus price target of $181.03, suggesting a potential upside of 1.77%. As a group, “Capital Markets” companies have a potential upside of 24.22%. Given Northern Trust’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Northern Trust has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Northern Trust and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Northern Trust	$14.30 billion	$1.74 billion	13.94
Northern Trust Competitors	$5.22 billion	$399.89 million	17.34

Northern Trust has higher revenue and earnings than its rivals. Northern Trust is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Northern Trust pays an annual dividend of $3.52 per share and has a dividend yield of 2.0%. Northern Trust pays out 27.6% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend.

Institutional and Insider Ownership

83.2% of Northern Trust shares are owned by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are owned by institutional investors. 0.7% of Northern Trust shares are owned by company insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Northern Trust has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Northern Trust’s rivals have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Summary

Northern Trust rivals beat Northern Trust on 9 of the 15 factors compared.

Northern Trust Company Profile

Northern Trust Corporation is a financial services company headquartered in Chicago. Founded in 1889, it provides services to institutions, corporations, governments, and individuals and families. The company’s businesses include asset servicing, asset management, wealth management, and banking. Its services include investment management, custody and administration, fiduciary services, banking, and financial planning. Northern Trust serves clients in the United States and internationally, with operations across multiple regions.