Northern Trust Corporation (NTRS) vs Pershing Square Inc. (PS)

Northern Trust Corporation and Pershing Square Inc. are both Asset Management companies. Northern Trust Corporation is the larger, with a market value of $31.0B against $20.1B — 1.5× the size. Northern Trust Corporation has the higher net margin (15.5% vs −67.6%) and the higher return on invested capital (0.00% vs −2.43%). Across the 12 metrics below, Northern Trust Corporation leads on 10 and Pershing Square Inc. on 2.

Valuation

Metric NTRS PS Asset Management median
P/E 13.39 — 13.38
P/S 2.04 91.98 2.99
P/B 2.51 14.18 0.91
Price to free cash flow 28.64 n/m 7.79
EV/EBITDA — n/m —
EV/Sales — 81.89 —
Earnings yield 7.47% — 4.67%
Free cash flow yield 3.49% (0.40%) 4.85%

Profitability

Metric NTRS PS Asset Management median
Gross margin 60.92% 100.00% 100.00%
Operating margin 0.00% (25.11%) 27.27%
Net margin 15.47% (67.64%) 11.89%
Free cash flow margin 7.14% (36.88%) 5.96%
Return on equity 19.28% 0.00% 4.57%
Return on assets 1.40% (16.21%) 1.40%
Return on invested capital 0.00% (2.43%) 2.12%

Growth

Metric NTRS PS Asset Management median
Revenue growth (TTM) 6.50% — 7.26%
EPS growth (last fiscal year) (10.54%) — (5.64%)
Revenue growth, 5-year CAGR 17.81% — 11.84%
Net income growth, 5-year CAGR 8.03% — 0.00%

Health

Metric NTRS PS Asset Management median
Debt to equity 0.40 0.00 0.40
Current ratio 0.61 0.04 1.23
Net debt to EBITDA 0.00 — 1.06

Dividend

Metric NTRS PS Asset Management median
Dividend yield 1.91% — 6.43%
Payout ratio 0.26 — 0.91

Size

Metric NTRS PS Asset Management median
Market cap 31.04b 20.14b 692.54m

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