Northern Trust (NASDAQ:NTRS) and Commercial National Financial (OTCMKTS:CEFC) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
This table compares Northern Trust and Commercial National Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Commercial National Financial||20.38%||N/A||N/A|
This is a summary of current ratings and target prices for Northern Trust and Commercial National Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Commercial National Financial||0||0||0||0||N/A|
Northern Trust currently has a consensus target price of $105.76, suggesting a potential upside of 23.71%. Given Northern Trust’s higher probable upside, equities analysts clearly believe Northern Trust is more favorable than Commercial National Financial.
Volatility and Risk
Northern Trust has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Commercial National Financial has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.
Earnings & Valuation
This table compares Northern Trust and Commercial National Financial’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Northern Trust||$6.66 billion||2.76||$1.56 billion||$6.73||12.70|
|Commercial National Financial||$21.24 million||1.96||$4.50 million||N/A||N/A|
Northern Trust has higher revenue and earnings than Commercial National Financial.
Northern Trust pays an annual dividend of $2.40 per share and has a dividend yield of 2.8%. Commercial National Financial pays an annual dividend of $0.52 per share and has a dividend yield of 4.9%. Northern Trust pays out 35.7% of its earnings in the form of a dividend. Northern Trust has increased its dividend for 7 consecutive years.
Institutional and Insider Ownership
79.9% of Northern Trust shares are held by institutional investors. Comparatively, 0.2% of Commercial National Financial shares are held by institutional investors. 1.2% of Northern Trust shares are held by company insiders. Comparatively, 23.0% of Commercial National Financial shares are held 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.
Northern Trust beats Commercial National Financial on 12 of the 15 factors compared between the two stocks.
About Northern Trust
Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. It operates in two segments, Corporate & Institutional Services (C&IS) and Wealth Management. The C&IS segment offers asset servicing and related services, including custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefit services, securities lending, foreign exchange, treasury management, brokerage services, transition management services, banking, and cash management services. This segment serves corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors. The Wealth Management segment offers trust, investment management, custody, and philanthropic; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking services. This segment serves high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses. The company also provides asset management services, such as active and passive equity; active and passive fixed income; cash management; alternative asset classes comprising private equity and hedge funds of funds; and multi-manager advisory services and products through separately managed accounts, bank common and collective funds, registered investment companies, exchange traded funds, non-U.S. collective investment funds, and unregistered private investment funds. In addition, it offers overlay and other risk management services. The company was founded in 1889 and is headquartered in Chicago, Illinois.
About Commercial National Financial
Commercial National Financial Corporation operates as the holding company for Commercial Bank that provides various banking products and services to individuals, agricultural businesses, commercial businesses, and light industries in Michigan. It accepts various deposit products, including checking and savings accounts, individual retirement accounts, certificates of deposit, and health savings accounts. The company also offers personal loan products, such as automobile loans, recreational vehicle loans, personal lines of credit, and unsecured term loans, as well as home equity loans and mortgage loans; and business loans, including secured lines of credit, business equity line of credit, SBA loans, equipment loans, real estate loans, vehicle loans, term loans, USDA loan programs, and capital access loan programs. It also provides other services comprising business VISA check cards, debit and ATM cards, business statement savings, business certificates of deposit, merchant bankcard referrals, night depository, cash management, telephone banking, online banking, e-statements, direct deposit of payroll for employees, federal and state tax payments, child support payments, collection of receivables, and remote deposit capture. The company provides its services through 12 offices located in Barry, Gratiot, Ingham, Ionia, Isabella, Kent, and Montcalm counties in Michigan. Commercial National Financial Corporation was founded in 1893 and is headquartered in Ithaca, Michigan.
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