Comparing U.S. Bancorp (USB) and Its Competitors

U.S. Bancorp (NYSE: USB) is one of 308 public companies in the “Banks” industry, but how does it contrast to its rivals? We will compare U.S. Bancorp to similar businesses based on the strength of its earnings, analyst recommendations, valuation, risk, dividends, profitability and institutional ownership.

Dividends

U.S. Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. U.S. Bancorp pays out 35.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.3% of their earnings in the form of a dividend. U.S. Bancorp has increased its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for U.S. Bancorp and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Bancorp 2 10 4 0 2.13
U.S. Bancorp Competitors 2232 8610 8635 354 2.36

U.S. Bancorp presently has a consensus target price of $55.07, suggesting a potential upside of 0.16%. As a group, “Banks” companies have a potential downside of 7.44%. Given U.S. Bancorp’s higher probable upside, analysts plainly believe U.S. Bancorp is more favorable than its rivals.

Risk & Volatility

U.S. Bancorp has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, U.S. Bancorp’s rivals have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.

Profitability

This table compares U.S. Bancorp and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
U.S. Bancorp 25.46% 13.91% 1.32%
U.S. Bancorp Competitors 18.62% 8.30% 0.94%

Earnings & Valuation

This table compares U.S. Bancorp and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
U.S. Bancorp $22.74 billion $5.89 billion 16.36
U.S. Bancorp Competitors $5.50 billion $827.87 million 395.81

U.S. Bancorp has higher revenue and earnings than its rivals. U.S. Bancorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

74.0% of U.S. Bancorp shares are owned by institutional investors. Comparatively, 52.1% of shares of all “Banks” companies are owned by institutional investors. 0.4% of U.S. Bancorp shares are owned by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

U.S. Bancorp beats its rivals on 9 of the 15 factors compared.

U.S. Bancorp Company Profile

U.S. Bancorp is a multi-state financial services holding company. The Company provides a full range of financial services, including lending and depository services, cash management, capital markets, and trust and investment management services. It also engages in credit card services, merchant and automated teller machine (ATM) processing, mortgage banking, insurance, brokerage and leasing. The Company’s banking subsidiary, U.S. Bank National Association, is engaged in the general banking business, principally in domestic markets. U.S. Bank National Association provides a range of products and services to individuals, businesses, institutional organizations, governmental entities and other financial institutions. As of December 31, 2016, the Company’s loan portfolio was $273.2 billion. As of December 31, 2016, its investment securities amounted to $109.3 billion. As of December 31, 2016, the Company’s deposits amounted to $334,590 billion.

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