Comparing Bank of N.T. Butterfield & Son (NTB) and Its Rivals

Bank of N.T. Butterfield & Son (NYSE:NTB) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Bank of N.T. Butterfield & Son to related companies based on the strength of its institutional ownership, dividends, risk, earnings, analyst recommendations, profitability and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Bank of N.T. Butterfield & Son and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of N.T. Butterfield & Son	0	3	0	1	2.50
Bank of N.T. Butterfield & Son Competitors	7494	30254	27863	1490	2.35

Bank of N.T. Butterfield & Son currently has a consensus price target of $65.50, suggesting a potential upside of 16.19%. As a group, “Banks” companies have a potential upside of 14.37%. Given Bank of N.T. Butterfield & Son’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Bank of N.T. Butterfield & Son is more favorable than its peers.

Earnings and Valuation

This table compares Bank of N.T. Butterfield & Son and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bank of N.T. Butterfield & Son	$800.02 million	$231.94 million	9.84
Bank of N.T. Butterfield & Son Competitors	$298.53 billion	$2.42 billion	21.06

Bank of N.T. Butterfield & Son’s peers have higher revenue and earnings than Bank of N.T. Butterfield & Son. Bank of N.T. Butterfield & Son is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Bank of N.T. Butterfield & Son has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Bank of N.T. Butterfield & Son’s peers have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Institutional & Insider Ownership

62.7% of Bank of N.T. Butterfield & Son shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 1.2% of Bank of N.T. Butterfield & Son shares are owned by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Bank of N.T. Butterfield & Son pays an annual dividend of $2.00 per share and has a dividend yield of 3.5%. Bank of N.T. Butterfield & Son pays out 34.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Bank of N.T. Butterfield & Son lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Bank of N.T. Butterfield & Son and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of N.T. Butterfield & Son	29.21%	22.45%	1.79%
Bank of N.T. Butterfield & Son Competitors	15.63%	9.41%	0.93%

Summary

Bank of N.T. Butterfield & Son peers beat Bank of N.T. Butterfield & Son on 8 of the 15 factors compared.

About Bank of N.T. Butterfield & Son

Bank of N.T. Butterfield & Son Limited is a Bermuda-based bank and wealth manager founded in 1858. It provides banking and financial services to individuals, businesses, and institutional clients. Its services include personal and corporate banking, private banking, trust and fiduciary services, investment management, and custody services. Banking products include deposit accounts, lending, and related financial services. Butterfield serves clients across several international markets, including Bermuda, the Cayman Islands, the Channel Islands, and the United Kingdom, with additional operations in other jurisdictions.