State Street Corporation (NYSE: STT) is one of 55 publicly-traded companies in the “Investment Management & Fund Operators” industry, but how does it compare to its rivals? We will compare State Street Corporation to similar businesses based on the strength of its analyst recommendations, profitability, earnings, institutional ownership, valuation, risk and dividends.

Volatility & Risk

State Street Corporation has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, State Street Corporation’s rivals have a beta of 1.23, meaning that their average stock price is 23% more volatile than the S&P 500.

Dividends

State Street Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 1.7%. State Street Corporation pays out 31.1% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.6% and pay out 49.6% of their earnings in the form of a dividend. State Street Corporation has raised its dividend for 6 consecutive years.

Earnings and Valuation

This table compares State Street Corporation and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
State Street Corporation $10.63 billion N/A 18.39
State Street Corporation Competitors $2.88 billion $924.32 million 7.43

State Street Corporation has higher revenue, but lower earnings than its rivals. State Street Corporation 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.

Institutional & Insider Ownership

87.4% of State Street Corporation shares are held by institutional investors. Comparatively, 62.1% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 0.7% of State Street Corporation shares are held by insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are held by 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 summary of current ratings and price targets for State Street Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
State Street Corporation 1 9 3 1 2.29
State Street Corporation Competitors 275 1631 1756 57 2.43

State Street Corporation presently has a consensus target price of $94.08, indicating a potential downside of 5.25%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 3.95%. Given State Street Corporation’s rivals stronger consensus rating and higher probable upside, analysts plainly believe State Street Corporation has less favorable growth aspects than its rivals.

Profitability

This table compares State Street Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
State Street Corporation 19.97% 12.49% 0.95%
State Street Corporation Competitors -45.48% 7.48% 4.98%

Summary

State Street Corporation beats its rivals on 8 of the 14 factors compared.

State Street Corporation Company Profile

State Street Corporation is a financial holding company. The Company operates through two lines of business: Investment Servicing and Investment Management. The Company, through its subsidiary, State Street Bank and Trust Company (State Street Bank), provides a range of financial products and services to institutional investors across the world. Investment servicing line of business performs functions, such as providing institutional investors with clearing, settlement and payment services. The Company operates investment management line of business through State Street Global Advisors (SSGA). SSGA provides a range of investment management, investment research and investment advisory services to corporations, public funds and other investors. Its clients include mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments and investment managers.

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