Head-To-Head Analysis: U.S. Bancorp (USB) versus The Competition

U.S. Bancorp (NYSE: USB) is one of 311 publicly-traded companies in the “Banks” industry, but how does it compare to its competitors? We will compare U.S. Bancorp to related businesses based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

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 25.46% 13.91% 1.32%
U.S. Bancorp Competitors 18.55% 8.24% 0.93%

Insider & Institutional Ownership

74.0% of U.S. Bancorp shares are owned by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are owned by institutional investors. 0.4% of U.S. Bancorp shares are owned by company insiders. Comparatively, 10.4% 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.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
U.S. Bancorp $22.74 billion $5.89 billion 16.91
U.S. Bancorp Competitors $5.50 billion $827.87 million 408.87

U.S. Bancorp has higher revenue and earnings than its competitors. 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.

Volatility and Risk

U.S. Bancorp has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, U.S. Bancorp’s competitors have a beta of 0.80, meaning that their average stock price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for U.S. Bancorp and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Bancorp 2 10 6 0 2.22
U.S. Bancorp Competitors 2419 8770 8783 369 2.35

U.S. Bancorp presently has a consensus price target of $56.00, suggesting a potential downside of 1.72%. As a group, “Banks” companies have a potential downside of 11.66%. Given U.S. Bancorp’s higher possible upside, research analysts clearly believe U.S. Bancorp is more favorable than its competitors.

Dividends

U.S. Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 2.1%. U.S. Bancorp pays out 35.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.2% of their earnings in the form of a dividend. U.S. Bancorp has raised its dividend for 7 consecutive years.

Summary

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

U.S. Bancorp Company Profile

U.S. Bancorp is a multi-state financial services holding company. The Company provides a full range of financial services, including lending and depository services, cash management, capital markets, and trust and investment management services. It also engages in credit card services, merchant and automated teller machine (ATM) processing, mortgage banking, insurance, brokerage and leasing. The Company’s banking subsidiary, U.S. Bank National Association, is engaged in the general banking business, principally in domestic markets. U.S. Bank National Association provides a range of products and services to individuals, businesses, institutional organizations, governmental entities and other financial institutions. As of December 31, 2016, the Company’s loan portfolio was $273.2 billion. As of December 31, 2016, its investment securities amounted to $109.3 billion. As of December 31, 2016, the Company’s deposits amounted to $334,590 billion.

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