Bank Of New York Mellon Corporation (The) (NYSE: BK) is one of 53 public companies in the “Investment Management & Fund Operators” industry, but how does it compare to its rivals? We will compare Bank Of New York Mellon Corporation (The) to related companies based on the strength of its valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Risk & Volatility

Bank Of New York Mellon Corporation (The) has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Bank Of New York Mellon Corporation (The)’s rivals have a beta of 1.23, suggesting that their average stock price is 23% more volatile than the S&P 500.

Earnings and Valuation

This table compares Bank Of New York Mellon Corporation (The) and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Bank Of New York Mellon Corporation (The) $15.55 billion N/A 15.25
Bank Of New York Mellon Corporation (The) Competitors $3.00 billion $961.92 million 6.53

Bank Of New York Mellon Corporation (The) has higher revenue, but lower earnings than its rivals. Bank Of New York Mellon Corporation (The) is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

81.8% of Bank Of New York Mellon Corporation (The) shares are owned by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 3.6% of Bank Of New York Mellon Corporation (The) shares are owned by company insiders. Comparatively, 10.4% of shares of all “Investment Management & Fund Operators” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Bank Of New York Mellon Corporation (The) and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank Of New York Mellon Corporation (The) 2 8 3 2 2.33
Bank Of New York Mellon Corporation (The) Competitors 357 1778 1794 62 2.39

Bank Of New York Mellon Corporation (The) presently has a consensus target price of $53.71, indicating a potential upside of 4.18%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 6.70%. Given Bank Of New York Mellon Corporation (The)’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Bank Of New York Mellon Corporation (The) has less favorable growth aspects than its rivals.

Dividends

Bank Of New York Mellon Corporation (The) pays an annual dividend of $0.96 per share and has a dividend yield of 1.9%. Bank Of New York Mellon Corporation (The) pays out 28.4% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.8% and pay out 49.4% of their earnings in the form of a dividend. Bank Of New York Mellon Corporation (The) has raised its dividend for 4 consecutive years.

Profitability

This table compares Bank Of New York Mellon Corporation (The) and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank Of New York Mellon Corporation (The) 23.35% 10.35% 1.07%
Bank Of New York Mellon Corporation (The) Competitors -46.91% 10.48% 5.74%

Summary

Bank Of New York Mellon Corporation (The) rivals beat Bank Of New York Mellon Corporation (The) on 8 of the 14 factors compared.

Bank Of New York Mellon Corporation (The) Company Profile

The Bank of New York Mellon Corporation is an investments company. The Company operates businesses through two segments: Investment Management and Investment Services. The Company also has an Other segment, which includes the leasing portfolio, corporate treasury activities (including its investment securities portfolio), derivatives and other trading, corporate and bank-owned life insurance and renewable energy investments, and business exits. As of December 31, 2016, the Company had $29.9 trillion in assets under custody and/or administration and $1.6 trillion in assets under management. The Company’s Investment Management boutiques offer a range of actively managed equity, fixed income, alternative and liability-driven investments, along with passive products and cash management. The Company offers asset servicing, clearing services, issuer services and treasury services to its clients.

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