The Bank of New York Mellon (NYSE:BK) and Glacier Bancorp (NASDAQ:GBCI) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
The Bank of New York Mellon pays an annual dividend of $1.24 per share and has a dividend yield of 2.6%. Glacier Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 2.1%. The Bank of New York Mellon pays out 30.8% of its earnings in the form of a dividend. Glacier Bancorp pays out 50.4% 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. The Bank of New York Mellon has raised its dividend for 1 consecutive years and Glacier Bancorp has raised its dividend for 3 consecutive years. The Bank of New York Mellon is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares The Bank of New York Mellon and Glacier Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Bank of New York Mellon||23.09%||9.89%||0.89%|
Valuation and Earnings
This table compares The Bank of New York Mellon and Glacier Bancorp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Bank of New York Mellon||$20.77 billion||2.02||$4.44 billion||$4.02||11.92|
|Glacier Bancorp||$676.95 million||8.12||$210.54 million||$2.38||24.18|
The Bank of New York Mellon has higher revenue and earnings than Glacier Bancorp. The Bank of New York Mellon is trading at a lower price-to-earnings ratio than Glacier Bancorp, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
82.3% of The Bank of New York Mellon shares are held by institutional investors. Comparatively, 68.1% of Glacier Bancorp shares are held by institutional investors. 0.1% of The Bank of New York Mellon shares are held by company insiders. Comparatively, 0.5% of Glacier Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings for The Bank of New York Mellon and Glacier Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Bank of New York Mellon||0||7||10||0||2.59|
The Bank of New York Mellon currently has a consensus target price of $48.72, suggesting a potential upside of 1.71%. Glacier Bancorp has a consensus target price of $38.00, suggesting a potential downside of 33.98%. Given The Bank of New York Mellon’s stronger consensus rating and higher probable upside, research analysts clearly believe The Bank of New York Mellon is more favorable than Glacier Bancorp.
Volatility and Risk
The Bank of New York Mellon has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Glacier Bancorp has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
The Bank of New York Mellon beats Glacier Bancorp on 10 of the 17 factors compared between the two stocks.
The Bank of New York Mellon Company Profile
The Bank of New York Mellon Corp. is a bank holding company, which engages in the provision of financial services. It operates through the Investment Services and Investment Management segments. The Investment Services segment includes institutional trust and custody fees, broker-dealer services, corporate trust, depositary receipts, and foreign exchange. The Investment Management segment provides services to institutional and retail investors, as well as investment management, wealth and estate planning. The company was founded by Alexander Hamilton on June 9, 1784 and is headquartered in New York, NY.
Glacier Bancorp Company Profile
Glacier Bancorp, Inc. operates as the bank holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. It offers non-interest bearing deposit and interest bearing deposit accounts, such as negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposits, negotiated-rate jumbo certificates, and individual retirement accounts. The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; paycheck protection program loans; home equity loans consisting of 1-4 family junior lien mortgages, and first and junior lien lines of credit secured by residential real estate; and agriculture loans. Further, the company provides mortgage origination and loan servicing services. Glacier Bancorp, Inc. has 193 locations, including 172 branches and 21 loan or administration offices in 71 counties within 8 states comprising Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada. The company was founded in 1955 and is headquartered in Kalispell, Montana.
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