Analyzing U.S. Bancorp (NYSE:USB) & The Competition

U.S. Bancorp (NYSE: USB) is one of 297 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare U.S. Bancorp to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.

Institutional & Insider Ownership

74.1% 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, 10.2% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

U.S. Bancorp has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, U.S. Bancorp’s peers have a beta of 0.76, indicating that their average stock price is 24% less volatile than the S&P 500.

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 34.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 36.5% of their earnings in the form of a dividend. U.S. Bancorp has increased its dividend for 7 consecutive years. U.S. Bancorp is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings for U.S. Bancorp and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Bancorp 3 9 6 0 2.17
U.S. Bancorp Competitors 2418 8718 8762 364 2.35

U.S. Bancorp presently has a consensus price target of $57.68, indicating a potential upside of 1.36%. As a group, “Banks” companies have a potential downside of 4.87%. Given U.S. Bancorp’s higher possible upside, equities research analysts plainly believe U.S. Bancorp is more favorable than its peers.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
U.S. Bancorp $24.00 billion $6.29 billion 16.16
U.S. Bancorp Competitors $5.73 billion $764.39 million 413.12

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.

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 25.91% 13.89% 1.32%
U.S. Bancorp Competitors 17.48% 8.40% 0.95%

Summary

U.S. Bancorp beats its peers on 10 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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