Analyzing Northern Trust (NTRS) and Hingham Institution for Savings (HIFS)

Northern Trust (NASDAQ: NTRS) and Hingham Institution for Savings (NASDAQ:HIFS) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Northern Trust and Hingham Institution for Savings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northern Trust 1 8 6 0 2.33
Hingham Institution for Savings 0 0 0 0 N/A

Northern Trust currently has a consensus target price of $110.00, indicating a potential upside of 6.91%. Given Northern Trust’s higher possible upside, equities research analysts plainly believe Northern Trust is more favorable than Hingham Institution for Savings.

Dividends

Northern Trust pays an annual dividend of $1.68 per share and has a dividend yield of 1.6%. Hingham Institution for Savings pays an annual dividend of $1.36 per share and has a dividend yield of 0.6%. Northern Trust pays out 34.8% of its earnings in the form of a dividend.

Institutional & Insider Ownership

78.1% of Northern Trust shares are held by institutional investors. Comparatively, 31.6% of Hingham Institution for Savings shares are held by institutional investors. 1.0% of Northern Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Northern Trust has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Hingham Institution for Savings has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares Northern Trust and Hingham Institution for Savings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northern Trust 21.84% 13.88% 0.98%
Hingham Institution for Savings 32.97% N/A N/A

Valuation & Earnings

This table compares Northern Trust and Hingham Institution for Savings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northern Trust $5.72 billion 4.05 $1.20 billion $4.83 21.30
Hingham Institution for Savings $82.47 million 5.62 $25.76 million N/A N/A

Northern Trust has higher revenue and earnings than Hingham Institution for Savings.

Summary

Northern Trust beats Hingham Institution for Savings on 11 of the 14 factors compared between the two stocks.

About Northern Trust

Northern Trust Corporation, a financial holding company, provides asset servicing, fund administration, asset management, fiduciary, and banking solutions for corporations, institutions, families, and individuals worldwide. It operates through Corporate & Institutional Services (C&IS) and Wealth Management segments. The C&IS segment offers asset servicing and related services, including global custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefit services, securities lending, foreign exchange, treasury management, brokerage services, transition management services, banking, and cash management services. This segment provides services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors. The Wealth Management segment offers trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. This segment serves high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses. The company also provides asset management services, such as active, passive, and engineered equity; active and passive fixed income; cash management; alternative asset classes comprising private equity and hedge funds of funds; and multi-manager advisory services and products through separately managed accounts, bank common and collective funds, registered investment companies, exchange traded funds, non-U.S. collective investment funds, and unregistered private investment funds. In addition, it offers overlay services and other risk management services. Northern Trust Corporation was founded in 1889 and is based in Chicago, Illinois.

About Hingham Institution for Savings

Hingham Institution for Savings (the Bank) is a Massachusetts-chartered savings bank (the Bank). The Bank is principally engaged in the business of residential and commercial real estate mortgage lending, funded by a retail deposit network and borrowings. The Bank provides a range of financial services to individuals and small businesses through its approximately 10 offices in Boston and southeastern Massachusetts. Its primary deposit products are savings, checking, and term certificate accounts, and its primary lending products are residential and commercial mortgage loans secured by properties in Eastern Massachusetts. The Bank offers personal checking accounts, money market and savings accounts, as well as longer term certificates of deposit for individuals, businesses, non-profits, cities and towns. The Bank’s loan portfolio includes residential real estate, commercial real estate, construction, home equity, commercial and consumer segments.

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