Northern Trust Corporation (NTRS) vs State Street Corporation (STT)

Northern Trust Corporation and State Street Corporation are both Asset Management companies. State Street Corporation is the larger, with a market value of $49.8B against $31.9B — 1.6× the size. Northern Trust Corporation trades at the lower P/E: 15.0× against 15.7×. Northern Trust Corporation grew revenue faster over the last twelve months: 3.12% against 2.00%. Northern Trust Corporation has the higher net margin (14.4% vs 14.0%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; Northern Trust Corporation yields more (3.93% vs 3.93%). Across the 17 metrics below, Northern Trust Corporation leads on 11 and State Street Corporation on 6.

Valuation

Metric NTRS STT Asset Management median
P/E 15.01 15.73 14.62
P/S 2.13 2.18 2.97
P/B 2.58 2.03 0.94
Price to free cash flow n/m 24.80 8.93
EV/EBITDA n/m n/m 10.32
EV/Sales (1.36) (3.63) 5.72
Earnings yield 6.66% 6.36% 4.53%
Free cash flow yield (0.67%) 4.03% 4.65%

Profitability

Metric NTRS STT Asset Management median
Gross margin 59.61% 65.45% 100.00%
Operating margin 0.00% 0.00% 33.03%
Net margin 14.36% 14.00% 13.53%
Free cash flow margin (1.44%) 8.78% 12.44%
Return on equity 17.81% 13.29% 4.83%
Return on assets 1.24% 0.81% 1.57%
Return on invested capital 0.00% 0.00% 3.04%

Growth

Metric NTRS STT Asset Management median
Revenue growth (TTM) 3.12% 2.00% 6.97%
EPS growth (last fiscal year) (10.54%) 14.49% —
Revenue growth, 5-year CAGR 17.81% 13.38% 12.13%
Net income growth, 5-year CAGR 8.03% 3.78% 0.00%

Health

Metric NTRS STT Asset Management median
Debt to equity 0.40 0.91 0.42
Current ratio 0.65 0.59 1.28
Net debt to EBITDA 0.00 0.00 1.06

Dividend

Metric NTRS STT Asset Management median
Dividend yield 3.93% 3.93% 6.92%
Payout ratio 0.54 0.34 0.77

Size

Metric NTRS STT Asset Management median
Market cap 31.93b 49.75b 721.34m

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