Janus Capital Group (NYSE: JNS) and Bank Of New York Mellon Corporation (The) (NYSE:BK) are both financials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Insider and Institutional Ownership

90.2% of Janus Capital Group shares are held by institutional investors. Comparatively, 81.8% of Bank Of New York Mellon Corporation (The) shares are held by institutional investors. 2.1% of Janus Capital Group shares are held by company insiders. Comparatively, 3.6% of Bank Of New York Mellon Corporation (The) shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Janus Capital Group has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Bank Of New York Mellon Corporation (The) has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Janus Capital Group and Bank Of New York Mellon Corporation (The), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Janus Capital Group 1 6 0 0 1.86
Bank Of New York Mellon Corporation (The) 2 8 3 2 2.33

Janus Capital Group presently has a consensus price target of $14.20, indicating a potential upside of 0.21%. Bank Of New York Mellon Corporation (The) has a consensus price target of $53.43, indicating a potential upside of 6.26%. Given Bank Of New York Mellon Corporation (The)’s stronger consensus rating and higher probable upside, analysts clearly believe Bank Of New York Mellon Corporation (The) is more favorable than Janus Capital Group.

Profitability

This table compares Janus Capital Group and Bank Of New York Mellon Corporation (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Janus Capital Group 12.54% 7.26% 4.48%
Bank Of New York Mellon Corporation (The) 23.35% 10.35% 1.07%

Dividends

Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Bank Of New York Mellon Corporation (The) pays an annual dividend of $0.96 per share and has a dividend yield of 1.9%. Janus Capital Group pays out 55.7% of its earnings in the form of a dividend. Bank Of New York Mellon Corporation (The) pays out 28.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Janus Capital Group has raised its dividend for 6 consecutive years and Bank Of New York Mellon Corporation (The) has raised its dividend for 4 consecutive years. Janus Capital Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Janus Capital Group and Bank Of New York Mellon Corporation (The)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Janus Capital Group N/A N/A N/A $0.79 17.94
Bank Of New York Mellon Corporation (The) $15.55 billion 3.34 $3.49 billion $3.38 14.88

Bank Of New York Mellon Corporation (The) has higher revenue and earnings than Janus Capital Group. Bank Of New York Mellon Corporation (The) is trading at a lower price-to-earnings ratio than Janus Capital Group, indicating that it is currently the more affordable of the two stocks.

Summary

Bank Of New York Mellon Corporation (The) beats Janus Capital Group on 10 of the 15 factors compared between the two stocks.

About Janus Capital Group

Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.

About Bank Of New York Mellon Corporation (The)

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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