Northern Trust (NASDAQ:NTRS – Get Free Report) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it compare to its competitors? We will compare Northern Trust to related companies based on the strength of its analyst recommendations, valuation, risk, dividends, institutional ownership, profitability and earnings.
Profitability
This table compares Northern Trust and its competitors’ 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 | 318.48% | 79.19% | 3.72% |
Valuation & Earnings
This table compares Northern Trust and its competitors revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Northern Trust | $8.75 billion | $1.74 billion | 13.43 |
| Northern Trust Competitors | $2.20 billion | $397.86 million | 17.56 |
Northern Trust has higher revenue and earnings than its competitors. Northern Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Insider and Institutional Ownership
83.2% of Northern Trust shares are owned by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are owned by institutional investors. 0.7% of Northern Trust shares are owned by company insiders. Comparatively, 13.1% 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 stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Northern Trust and its competitors, 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 | 5551 | 20125 | 22461 | 642 | 2.37 |
Northern Trust currently has a consensus price target of $181.03, indicating a potential upside of 5.63%. As a group, “Capital Markets” companies have a potential upside of 25.74%. Given Northern Trust’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Northern Trust has less favorable growth aspects than its competitors.
Risk & Volatility
Northern Trust has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Northern Trust’s competitors have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.
Dividends
Northern Trust pays an annual dividend of $3.52 per share and has a dividend yield of 2.1%. 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 30.0% of their earnings in the form of a dividend.
Summary
Northern Trust competitors beat Northern Trust on 10 of the 15 factors compared.
Northern Trust Company Profile
Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. It operates in two segments, Asset Servicing and Wealth Management. The Asset Servicing segment offers asset servicing and related services, including custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefit services, securities lending, foreign exchange, treasury management, brokerage services, transition management services, banking, and cash management services. This segment serves corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors. The Wealth Management segment offers trust, investment management, custody, and philanthropic; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking services. This segment serves high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately held businesses. The company also provides asset management services, such as active and passive equity; active and passive fixed income; cash management; muti-asset and alternative asset classes comprising private equity and hedge funds of funds; and multi-manager advisory services and products through separately managed accounts, bank common and collective funds, registered investment companies, exchange traded funds, non-U.S. collective investment funds, and unregistered private investment funds. In addition, it offers overlay and other risk management services. Northern Trust Corporation was founded in 1889 and is headquartered in Chicago, Illinois.
Receive News & Ratings for Northern Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Northern Trust and related companies with MarketBeat.com's FREE daily email newsletter.
