Analyzing Noah Holdings (NOAH) & Bank Of New York Mellon Corporation (The) (BK)

Noah Holdings (NYSE: NOAH) and Bank Of New York Mellon Corporation (The) (NYSE:BK) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Risk & Volatility

Noah Holdings has a beta of 2.44, suggesting that its share price is 144% more volatile than the S&P 500. Comparatively, Bank Of New York Mellon Corporation (The) has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Earnings and Valuation

This table compares Noah Holdings and Bank Of New York Mellon Corporation (The)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Noah Holdings $409.59 million 5.35 $122.75 million $1.73 22.42
Bank Of New York Mellon Corporation (The) $15.55 billion 3.46 $3.53 billion $3.42 15.25

Bank Of New York Mellon Corporation (The) has higher revenue and earnings than Noah Holdings. Bank Of New York Mellon Corporation (The) is trading at a lower price-to-earnings ratio than Noah Holdings, indicating that it is currently the more affordable of the two stocks.

Dividends

Bank Of New York Mellon Corporation (The) pays an annual dividend of $0.96 per share and has a dividend yield of 1.8%. Noah Holdings does not pay a dividend. Bank Of New York Mellon Corporation (The) pays out 28.1% of its earnings in the form of a dividend. Bank Of New York Mellon Corporation (The) has increased its dividend for 4 consecutive years.

Profitability

This table compares Noah Holdings and Bank Of New York Mellon Corporation (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noah Holdings 29.39% 18.42% 11.94%
Bank Of New York Mellon Corporation (The) 23.14% 10.51% 1.11%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Noah Holdings and Bank Of New York Mellon Corporation (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noah Holdings 0 0 1 0 3.00
Bank Of New York Mellon Corporation (The) 2 9 4 1 2.25

Noah Holdings presently has a consensus target price of $29.00, indicating a potential downside of 25.24%. Bank Of New York Mellon Corporation (The) has a consensus target price of $54.88, indicating a potential upside of 5.25%. Given Bank Of New York Mellon Corporation (The)’s higher possible upside, analysts clearly believe Bank Of New York Mellon Corporation (The) is more favorable than Noah Holdings.

Insider and Institutional Ownership

41.3% of Noah Holdings shares are owned by institutional investors. Comparatively, 82.7% of Bank Of New York Mellon Corporation (The) shares are owned by institutional investors. 3.6% of Bank Of New York Mellon Corporation (The) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Bank Of New York Mellon Corporation (The) beats Noah Holdings on 10 of the 18 factors compared between the two stocks.

About Noah Holdings

Noah Holdings Limited is a wealth management service provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China. The Company operates through three segments: wealth management, asset management and Internet finance. It also provides Internet finance services to clients in China. It provides direct access to China’s high net worth population. With approximately 1,100 relationship managers in over 130 branch offices, its coverage network includes China’s regions where high net worth population is concentrated, including the Yangtze River Delta, the Pearl River Delta, the Bohai Rim and other regions. Its product offerings consist primarily of over-the-counter (OTC) wealth management and OTC asset management products, mutual fund products and asset management plans originated in China and designed to cater to the needs of China’s high net worth population.

About Bank Of New York Mellon Corporation (The)

The Bank of New York Mellon Corporation is an investments company. The Company operates businesses through two segments: Investment Management and Investment Services. The Company also has an Other segment, which includes the leasing portfolio, corporate treasury activities (including its investment securities portfolio), derivatives and other trading, corporate and bank-owned life insurance and renewable energy investments, and business exits. As of December 31, 2016, the Company had $29.9 trillion in assets under custody and/or administration and $1.6 trillion in assets under management. The Company’s Investment Management boutiques offer a range of actively managed equity, fixed income, alternative and liability-driven investments, along with passive products and cash management. The Company offers asset servicing, clearing services, issuer services and treasury services to its clients.

What are top analysts saying about Noah Holdings Ltd.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Noah Holdings Ltd. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit