Franklin Resources Inc (BEN) vs Northern Trust Corporation (NTRS)

Franklin Resources Inc and Northern Trust Corporation are both Asset Management companies. Northern Trust Corporation is the larger, with a market value of $31.9B against $16.5B — 1.9× the size. Northern Trust Corporation trades at the lower P/E: 15.0× against 22.5×. Franklin Resources Inc grew revenue faster over the last twelve months: 7.94% against 3.12%. Northern Trust Corporation has the higher net margin (14.4% vs 8.14%) and the lower return on invested capital (0.00% vs 2.27%). Both pay a dividend; Franklin Resources Inc yields more (4.61% vs 3.93%). Across the 21 metrics below, Franklin Resources Inc leads on 12 and Northern Trust Corporation on 9.

Valuation

Metric BEN NTRS Asset Management median
P/E 22.46 15.01 14.62
P/S 1.82 2.13 2.97
P/B 1.32 2.58 0.94
Price to free cash flow 73.45 n/m 8.93
EV/EBITDA 21.51 n/m 10.32
EV/Sales 3.11 (1.36) 5.72
Earnings yield 4.45% 6.66% 4.53%
Free cash flow yield 1.36% (0.67%) 4.65%

Profitability

Metric BEN NTRS Asset Management median
Gross margin 100.00% 59.61% 100.00%
Operating margin 9.71% 0.00% 33.03%
Net margin 8.14% 14.36% 13.53%
Free cash flow margin 2.48% (1.44%) 12.44%
Return on equity 5.84% 17.81% 4.83%
Return on assets 2.21% 1.24% 1.57%
Return on invested capital 2.27% 0.00% 3.04%

Growth

Metric BEN NTRS Asset Management median
Revenue growth (TTM) 7.94% 3.12% 6.97%
EPS growth (last fiscal year) 7.06% (10.54%) —
Revenue growth, 5-year CAGR 9.52% 17.81% 12.13%
Net income growth, 5-year CAGR (9.65%) 8.03% 0.00%

Health

Metric BEN NTRS Asset Management median
Debt to equity 1.22 0.40 0.42
Current ratio 1.48 0.65 1.28
Net debt to EBITDA 7.18 0.00 1.06

Dividend

Metric BEN NTRS Asset Management median
Dividend yield 4.61% 3.93% 6.92%
Payout ratio 0.74 0.54 0.77

Size

Metric BEN NTRS Asset Management median
Market cap 16.54b 31.93b 721.34m

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