Northern Trust Corporation (NASDAQ: NTRS) is one of 55 public companies in the “Investment Management & Fund Operators” industry, but how does it compare to its competitors? We will compare Northern Trust Corporation to similar companies based on the strength of its valuation, institutional ownership, earnings, dividends, profitability, analyst recommendations and risk.

Dividends

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 2.7% and pay out 49.4% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and target prices for Northern Trust Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northern Trust Corporation 1 6 3 1 2.36
Northern Trust Corporation Competitors 358 1790 1809 62 2.39

Northern Trust Corporation presently has a consensus target price of $94.64, indicating a potential upside of 2.94%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 5.35%. 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.

Institutional & Insider Ownership

81.9% of Northern Trust Corporation shares are owned by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 1.3% of Northern Trust Corporation shares are owned by company insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Northern Trust Corporation has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Northern Trust Corporation’s competitors have a beta of 1.23, meaning that their average share price is 23% more volatile than the S&P 500.

Earnings & Valuation

This table compares Northern Trust Corporation and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Northern Trust Corporation $5.09 billion N/A 20.89
Northern Trust Corporation Competitors $2.88 billion $924.36 million 7.07

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.

Profitability

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 -44.79% 7.38% 5.07%

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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