BlackRock (BLK) vs Northern Trust Corporation (NTRS)

BlackRock and Northern Trust Corporation are both Asset Management companies. BlackRock is the larger, with a market value of $174.4B against $31.9B — 5.5× the size. Northern Trust Corporation trades at the lower P/E: 15.0× against 25.6×. BlackRock grew revenue faster over the last twelve months: 26.5% against 3.12%. BlackRock has the higher net margin (24.1% vs 14.4%) and the higher return on invested capital (8.37% vs 0.00%). Both pay a dividend; Northern Trust Corporation yields more (3.93% vs 2.62%). Across the 21 metrics below, Northern Trust Corporation leads on 11 and BlackRock on 10.

Valuation

Metric BLK NTRS Asset Management median
P/E 25.63 15.01 14.62
P/S 6.18 2.13 2.97
P/B 2.91 2.58 0.94
Price to free cash flow 47.96 n/m 8.93
EV/EBITDA 17.08 n/m 10.32
EV/Sales 6.49 (1.36) 5.72
Earnings yield 3.90% 6.66% 4.53%
Free cash flow yield 2.08% (0.67%) 4.65%

Profitability

Metric BLK NTRS Asset Management median
Gross margin 100.00% 59.61% 100.00%
Operating margin 32.57% 0.00% 33.03%
Net margin 24.09% 14.36% 13.53%
Free cash flow margin 12.88% (1.44%) 12.44%
Return on equity 12.27% 17.81% 4.83%
Return on assets 4.08% 1.24% 1.57%
Return on invested capital 8.37% 0.00% 3.04%

Growth

Metric BLK NTRS Asset Management median
Revenue growth (TTM) 26.54% 3.12% 6.97%
EPS growth (last fiscal year) (15.95%) (10.54%) —
Revenue growth, 5-year CAGR 8.37% 17.81% 12.13%
Net income growth, 5-year CAGR 2.40% 8.03% 0.00%

Health

Metric BLK NTRS Asset Management median
Debt to equity 0.33 0.40 0.42
Current ratio 3.59 0.65 1.28
Net debt to EBITDA 1.13 0.00 1.06

Dividend

Metric BLK NTRS Asset Management median
Dividend yield 2.62% 3.93% 6.92%
Payout ratio 0.58 0.54 0.77

Size

Metric BLK NTRS Asset Management median
Market cap 174.38b 31.93b 721.34m

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