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

U.S. Bancorp (NYSE: USB) is one of 310 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare U.S. Bancorp to related businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Institutional and Insider Ownership

74.0% of U.S. Bancorp shares are owned by institutional investors. Comparatively, 51.9% of shares of all “Banks” companies are owned by institutional investors. 0.4% of U.S. Bancorp shares are owned by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares U.S. Bancorp and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
U.S. Bancorp $22.74 billion $5.89 billion 16.96
U.S. Bancorp Competitors $5.52 billion $831.28 million 402.17

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

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 35.2% of their earnings in the form of a dividend. U.S. Bancorp has increased its dividend for 7 consecutive years.

Volatility and Risk

U.S. Bancorp has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, U.S. Bancorp’s peers have a beta of 0.80, suggesting that their average share price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for U.S. Bancorp and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Bancorp 2 10 6 0 2.22
U.S. Bancorp Competitors 2417 8752 8769 369 2.35

U.S. Bancorp currently has a consensus target price of $56.00, suggesting a potential downside of 1.72%. As a group, “Banks” companies have a potential downside of 11.66%. Given U.S. Bancorp’s higher possible upside, research analysts plainly believe U.S. Bancorp is more favorable than its peers.

Profitability

This table compares U.S. Bancorp and its peers’ 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 18.65% 8.26% 0.93%

Summary

U.S. Bancorp beats its peers on 9 of the 15 factors compared.

About U.S. Bancorp

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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