Critical Comparison: State Street Corporation (NYSE:STT) versus The Competition

State Street Corporation (NYSE: STT) is one of 55 publicly-traded companies in the “Investment Management & Fund Operators” industry, but how does it compare to its competitors? We will compare State Street Corporation to related businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Profitability

This table compares State Street Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
State Street Corporation 20.56% 13.03% 1.01%
State Street Corporation Competitors -215.17% -2.72% 2.96%

Valuation & Earnings

This table compares State Street Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
State Street Corporation $10.63 billion N/A 16.21
State Street Corporation Competitors $2.89 billion $931.92 million 7.18

State Street Corporation has higher revenue, but lower earnings than its competitors. State Street Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

State Street Corporation has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, State Street Corporation’s competitors have a beta of 1.23, indicating that their average share price is 23% more volatile than the S&P 500.

Dividends

State Street Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 1.8%. State Street Corporation pays out 29.1% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.6% and pay out 48.0% of their earnings in the form of a dividend. State Street Corporation has increased its dividend for 6 consecutive years.

Insider and Institutional Ownership

87.7% of State Street Corporation shares are held by institutional investors. Comparatively, 62.1% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 0.7% of State Street Corporation shares are held by company insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for State Street Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
State Street Corporation 1 9 3 1 2.29
State Street Corporation Competitors 285 1652 1768 57 2.42

State Street Corporation currently has a consensus target price of $96.38, indicating a potential upside of 3.07%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 7.33%. Given State Street Corporation’s competitors stronger consensus rating and higher probable upside, analysts plainly believe State Street Corporation has less favorable growth aspects than its competitors.

Summary

State Street Corporation beats its competitors on 8 of the 14 factors compared.

State Street Corporation Company Profile

State Street Corporation is a financial holding company. The Company operates through two lines of business: Investment Servicing and Investment Management. The Company, through its subsidiary, State Street Bank and Trust Company (State Street Bank), provides a range of financial products and services to institutional investors across the world. Investment servicing line of business performs functions, such as providing institutional investors with clearing, settlement and payment services. The Company operates investment management line of business through State Street Global Advisors (SSGA). SSGA provides a range of investment management, investment research and investment advisory services to corporations, public funds and other investors. Its clients include mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments and investment managers.

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