U.S. Global Investors (NASDAQ:GROW) versus Bank of New York Mellon (NYSE:BNY) Financial Comparison

Bank of New York Mellon (NYSE:BNY) and U.S. Global Investors (NASDAQ:GROW) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Earnings & Valuation

This table compares Bank of New York Mellon and U.S. Global Investors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of New York Mellon	-$21.82 million	-4,574.34	$5.55 billion	$9.05	16.25
U.S. Global Investors	$10.25 million	3.17	$3.06 million	$0.25	10.56

Bank of New York Mellon has higher earnings, but lower revenue than U.S. Global Investors. U.S. Global Investors 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.

Insider & Institutional Ownership

85.3% of Bank of New York Mellon shares are owned by institutional investors. Comparatively, 23.6% of U.S. Global Investors shares are owned by institutional investors. 0.2% of Bank of New York Mellon shares are owned by insiders. Comparatively, 19.2% of U.S. Global Investors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Bank of New York Mellon and U.S. Global Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of New York Mellon	16.32%	16.57%	1.29%
U.S. Global Investors	29.81%	6.70%	6.30%

Dividends

Bank of New York Mellon pays an annual dividend of $2.52 per share and has a dividend yield of 1.7%. U.S. Global Investors pays an annual dividend of $0.09 per share and has a dividend yield of 3.4%. Bank of New York Mellon pays out 27.8% of its earnings in the form of a dividend. U.S. Global Investors pays out 36.0% 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. Bank of New York Mellon has increased its dividend for 14 consecutive years.

Volatility and Risk

Bank of New York Mellon has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, U.S. Global Investors has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Bank of New York Mellon and U.S. Global Investors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of New York Mellon	0	6	7	1	2.64
U.S. Global Investors	0	1	0	0	2.00

Bank of New York Mellon currently has a consensus price target of $164.62, suggesting a potential upside of 11.91%. Given Bank of New York Mellon’s stronger consensus rating and higher possible upside, analysts plainly believe Bank of New York Mellon is more favorable than U.S. Global Investors.

Summary

Bank of New York Mellon beats U.S. Global Investors on 12 of the 18 factors compared between the two stocks.

About Bank of New York Mellon

The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and other segments. The Securities Services segment offers custody, trust and depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, and data analytics. This segment also provides trustee, paying agency, fiduciary, escrow and other financial, issuer, and support services for brokers and investors. The Market and Wealth Services segment offers clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading, and prime brokerage services. This segment also provides integrated cash management solutions, including payments, foreign exchange, liquidity management, receivables processing and payables management, and trade finance and processing services. The Investment and Wealth Management segment offers investment management strategies and distribution of investment products, investment management, custody, wealth and estate planning, private banking, investment, and information management services. The Other segment engages in the provision of leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit services. It serves central banks and sovereigns, financial institutions, asset managers, insurance companies, corporations, local authorities and high net-worth individuals, and family offices. The Bank of New York Mellon Corporation was founded in 1784 and is headquartered in New York, New York.

About U.S. Global Investors

U.S. Global Investors, Inc. is a publicly owned investment manager. It primarily provides its services to investment companies. The firm is a large advisory firm, an investment adviser to an investment company which provides portfolio management for investment companies. The firm manages and launches equity/balanced funds, fixed income funds and other funds. It also manages hedge funds. The firm primarily invests in no-load mutual funds and exchange traded funds (ETFs). U.S. Global Investors, Inc. is based in San Antonio, Texas.