Analyzing U.S. Bancorp (USB) & Its Competitors

U.S. Bancorp (NYSE: USB) is one of 311 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare U.S. Bancorp to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.

Institutional and Insider Ownership

74.0% of U.S. Bancorp shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 0.4% of U.S. Bancorp shares are held by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

U.S. Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 2.1%. U.S. Bancorp pays out 35.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.9% of their earnings in the form of a dividend. U.S. Bancorp has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for U.S. Bancorp and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Bancorp 2 10 6 0 2.22
U.S. Bancorp Competitors 2270 8757 8685 359 2.36

U.S. Bancorp currently has a consensus price target of $56.00, indicating a potential downside of 1.20%. As a group, “Banks” companies have a potential downside of 0.49%. Given U.S. Bancorp’s competitors stronger consensus rating and higher probable upside, analysts plainly believe U.S. Bancorp has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares U.S. Bancorp and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
U.S. Bancorp $22.74 billion $5.89 billion 16.87
U.S. Bancorp Competitors $5.50 billion $827.87 million 385.17

U.S. Bancorp has higher revenue and earnings than its competitors. U.S. Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares U.S. Bancorp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
U.S. Bancorp 25.46% 13.91% 1.32%
U.S. Bancorp Competitors 18.78% 8.20% 0.92%

Volatility & Risk

U.S. Bancorp has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, U.S. Bancorp’s competitors have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Summary

U.S. Bancorp beats its competitors on 8 of the 15 factors compared.

U.S. Bancorp Company Profile

U.S. Bancorp is a multi-state financial services holding company. The Company provides a full range of financial services, including lending and depository services, cash management, capital markets, and trust and investment management services. It also engages in credit card services, merchant and automated teller machine (ATM) processing, mortgage banking, insurance, brokerage and leasing. The Company’s banking subsidiary, U.S. Bank National Association, is engaged in the general banking business, principally in domestic markets. U.S. Bank National Association provides a range of products and services to individuals, businesses, institutional organizations, governmental entities and other financial institutions. As of December 31, 2016, the Company’s loan portfolio was $273.2 billion. As of December 31, 2016, its investment securities amounted to $109.3 billion. As of December 31, 2016, the Company’s deposits amounted to $334,590 billion.

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