Janus Capital Group (JNS) vs. Northern Trust Corporation (NTRS) Head-To-Head Contrast

Janus Capital Group (NYSE: JNS) and Northern Trust Corporation (NASDAQ:NTRS) are both financials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Dividends

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 increased 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.

Valuation and Earnings

This table compares Janus Capital Group and Northern Trust Corporation’s 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 4.25 $1.01 billion $4.40 21.50

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.

Profitability

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%

Risk and Volatility

Janus Capital Group has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, Northern Trust Corporation has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Janus Capital Group and Northern Trust Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Janus Capital Group 1 4 0 0 1.80
Northern Trust Corporation 1 7 3 1 2.33

Janus Capital Group currently has a consensus price target of $13.33, suggesting a potential downside of 6.43%. Northern Trust Corporation has a consensus price target of $94.42, suggesting a potential downside of 0.17%. Given Northern Trust Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Northern Trust Corporation is more favorable than Janus Capital Group.

Insider and Institutional Ownership

90.2% of Janus Capital Group shares are owned by institutional investors. Comparatively, 81.9% of Northern Trust Corporation shares are owned by institutional investors. 2.1% of Janus Capital Group shares are owned by company insiders. Comparatively, 1.3% of Northern Trust Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

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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