Head-To-Head Comparison: U.S. Bancorp (USB) versus Its Rivals

U.S. Bancorp (NYSE:USB) is one of 919 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare U.S. Bancorp to related companies based on the strength of its valuation, profitability, analyst recommendations, institutional ownership, risk, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
U.S. Bancorp	18.85%	13.85%	1.17%
U.S. Bancorp Competitors	15.65%	9.44%	0.93%

Volatility and Risk

U.S. Bancorp has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, U.S. Bancorp’s competitors have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Insider & Institutional Ownership

77.6% of U.S. Bancorp shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are owned by institutional investors. 0.2% of U.S. Bancorp 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

U.S. Bancorp pays an annual dividend of $2.16 per share and has a dividend yield of 3.5%. U.S. Bancorp pays out 42.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.1% and pay out 28.9% of their earnings in the form of a dividend. U.S. Bancorp has raised its dividend for 14 consecutive years. U.S. Bancorp lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares U.S. Bancorp and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
U.S. Bancorp	$30.23 billion	$7.57 billion	11.90
U.S. Bancorp Competitors	$222.42 billion	$2.42 billion	21.21

U.S. Bancorp’s competitors have higher revenue, but lower earnings than U.S. Bancorp. U.S. Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations for U.S. Bancorp and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Bancorp	0	8	15	1	2.71
U.S. Bancorp Competitors	7484	30229	27810	1478	2.35

U.S. Bancorp currently has a consensus target price of $68.65, suggesting a potential upside of 12.43%. As a group, “Banks” companies have a potential upside of 14.70%. Given U.S. Bancorp’s competitors higher probable upside, analysts plainly believe U.S. Bancorp has less favorable growth aspects than its competitors.

Summary

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

U.S. Bancorp Company Profile

U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States. It operates through Wealth, Corporate, Commercial and Institutional Banking; Consumer and Business Banking; Payment Services; and Treasury and Corporate Support segments. The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; and lending services, such as traditional credit products and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate and governmental entity customers. In addition, the company offers asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. Further, it provides investment and insurance products to its customers principally within its domestic markets, as well as fund administration services to mutual and other funds. Additionally, the company provides corporate and purchasing card, and corporate trust services. Furthermore, it offers trust and investment management, merchant and ATM processing, mortgage banking, insurance, and brokerage and leasing services. U.S. Bancorp was founded in 1863 and is headquartered in Minneapolis, Minnesota.