FITB vs. STT, NTRS, CFG, ALLY, PNC, TFC, FCNCA, MTB, HBAN, and RF
Should you be buying Fifth Third Bancorp stock or one of its competitors? The main competitors of Fifth Third Bancorp include State Street (STT), Northern Trust (NTRS), Citizens Financial Group (CFG), Ally Financial (ALLY), The PNC Financial Services Group (PNC), Truist Financial (TFC), First Citizens BancShares (FCNCA), M&T Bank (MTB), Huntington Bancshares (HBAN), and Regions Financial (RF). These companies are all part of the "finance" sector.
State Street (NYSE:STT) and Fifth Third Bancorp (NASDAQ:FITB) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings, community ranking, media sentiment and valuation.
Fifth Third Bancorp has lower revenue, but higher earnings than State Street. Fifth Third Bancorp is trading at a lower price-to-earnings ratio than State Street, indicating that it is currently the more affordable of the two stocks.
State Street has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Fifth Third Bancorp has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
87.4% of State Street shares are held by institutional investors. Comparatively, 83.8% of Fifth Third Bancorp shares are held by institutional investors. 0.3% of State Street shares are held by insiders. Comparatively, 0.5% of Fifth Third Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Fifth Third Bancorp has a net margin of 17.70% compared to Fifth Third Bancorp's net margin of 9.62%. State Street's return on equity of 16.11% beat Fifth Third Bancorp's return on equity.
Fifth Third Bancorp received 78 more outperform votes than State Street when rated by MarketBeat users. Likewise, 57.15% of users gave Fifth Third Bancorp an outperform vote while only 56.50% of users gave State Street an outperform vote.
In the previous week, Fifth Third Bancorp had 4 more articles in the media than State Street. MarketBeat recorded 10 mentions for Fifth Third Bancorp and 6 mentions for State Street. State Street's average media sentiment score of 1.16 beat Fifth Third Bancorp's score of 0.87 indicating that Fifth Third Bancorp is being referred to more favorably in the news media.
State Street currently has a consensus price target of $84.04, indicating a potential upside of 13.70%. Fifth Third Bancorp has a consensus price target of $36.50, indicating a potential downside of 0.49%. Given Fifth Third Bancorp's higher possible upside, equities analysts plainly believe State Street is more favorable than Fifth Third Bancorp.
State Street pays an annual dividend of $2.76 per share and has a dividend yield of 3.7%. Fifth Third Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 3.8%. State Street pays out 51.7% of its earnings in the form of a dividend. Fifth Third Bancorp pays out 44.4% 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. State Street has raised its dividend for 12 consecutive years and Fifth Third Bancorp has raised its dividend for 13 consecutive years. Fifth Third Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Fifth Third Bancorp beats State Street on 15 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding FITB and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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