BEN vs. BK, AMP, TROW, STT, NTRS, ARCC, SEIC, IVZ, AMG, and MAIN
Should you be buying Franklin Resources stock or one of its competitors? The main competitors of Franklin Resources include Bank of New York Mellon (BK), Ameriprise Financial (AMP), T. Rowe Price Group (TROW), State Street (STT), Northern Trust (NTRS), Ares Capital (ARCC), SEI Investments (SEIC), Invesco (IVZ), Affiliated Managers Group (AMG), and Main Street Capital (MAIN). These companies are all part of the "asset management & custody banks" industry.
Franklin Resources (NYSE:BEN) and Bank of New York Mellon (NYSE:BK) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk, community ranking, media sentiment and profitability.
Franklin Resources has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Bank of New York Mellon has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.
Franklin Resources pays an annual dividend of $1.24 per share and has a dividend yield of 5.3%. Bank of New York Mellon pays an annual dividend of $1.68 per share and has a dividend yield of 2.8%. Franklin Resources pays out 70.9% of its earnings in the form of a dividend. Bank of New York Mellon pays out 41.0% 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.
Franklin Resources currently has a consensus target price of $26.00, indicating a potential upside of 10.17%. Bank of New York Mellon has a consensus target price of $60.17, indicating a potential upside of 0.93%. Given Franklin Resources' higher possible upside, research analysts plainly believe Franklin Resources is more favorable than Bank of New York Mellon.
Bank of New York Mellon has higher revenue and earnings than Franklin Resources. Franklin Resources is trading at a lower price-to-earnings ratio than Bank of New York Mellon, indicating that it is currently the more affordable of the two stocks.
Bank of New York Mellon received 434 more outperform votes than Franklin Resources when rated by MarketBeat users. Likewise, 67.15% of users gave Bank of New York Mellon an outperform vote while only 40.78% of users gave Franklin Resources an outperform vote.
Franklin Resources has a net margin of 11.09% compared to Bank of New York Mellon's net margin of 9.48%. Bank of New York Mellon's return on equity of 11.80% beat Franklin Resources' return on equity.
47.6% of Franklin Resources shares are owned by institutional investors. Comparatively, 85.3% of Bank of New York Mellon shares are owned by institutional investors. 24.1% of Franklin Resources shares are owned by insiders. Comparatively, 0.1% of Bank of New York Mellon shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
In the previous week, Bank of New York Mellon had 1 more articles in the media than Franklin Resources. MarketBeat recorded 7 mentions for Bank of New York Mellon and 6 mentions for Franklin Resources. Bank of New York Mellon's average media sentiment score of 1.42 beat Franklin Resources' score of 1.03 indicating that Bank of New York Mellon is being referred to more favorably in the news media.
Summary
Bank of New York Mellon beats Franklin Resources on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BEN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE 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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