Analyzing Janus Capital Group (JNS) & Northern Trust Corporation (NTRS)
Janus Capital Group (NYSE: JNS) and Northern Trust Corporation (NASDAQ:NTRS) are both financials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Insider & Institutional Ownership
90.2% of Janus Capital Group shares are held by institutional investors. Comparatively, 81.9% of Northern Trust Corporation shares are held by institutional investors. 2.1% of Janus Capital Group shares are held by insiders. Comparatively, 1.3% of Northern Trust Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Janus Capital Group and Northern Trust Corporation’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%|
|Northern Trust Corporation||20.21%||12.08%||0.88%|
This is a breakdown of current ratings and recommmendations for Janus Capital Group and Northern Trust Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Janus Capital Group||1||5||0||0||1.83|
|Northern Trust Corporation||1||7||3||1||2.33|
Janus Capital Group presently has a consensus price target of $13.75, suggesting a potential downside of 3.51%. Northern Trust Corporation has a consensus price target of $94.42, suggesting a potential upside of 1.53%. Given Northern Trust Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Northern Trust Corporation is more favorable than Janus Capital Group.
Valuation & Earnings
This table compares Janus Capital Group and Northern Trust Corporation’s gross revenue, earnings per share (EPS) 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||18.04|
|Northern Trust Corporation||$5.09 billion||4.17||$1.01 billion||$4.40||21.13|
Northern Trust Corporation has higher revenue and earnings than Janus Capital Group. Janus Capital Group is trading at a lower price-to-earnings ratio than Northern Trust Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Janus Capital Group has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Northern Trust Corporation has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Northern Trust Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 1.8%. Janus Capital Group pays out 55.7% of its earnings in the form of a dividend. Northern Trust Corporation pays out 38.2% 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. Janus Capital Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Northern Trust Corporation beats Janus Capital Group on 9 of the 15 factors compared between the two stocks.
Janus Capital Group Company Profile
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.
Northern Trust Corporation Company Profile
Northern Trust Corporation is a financial holding company. The Company provides asset servicing, fund administration, asset management, fiduciary and banking solutions for corporations, institutions, families and individuals across the world. Its segments include Corporate & Institutional Services (C&IS), Wealth Management, and Treasury and Other. The C&IS segment is a provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds and other institutional investors around the globe. The Wealth Management segment provides 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. It conducts its business through various subsidiaries.
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