Financial Comparison: U.S. Bancorp (USB) versus The Competition

U.S. Bancorp (NYSE: USB) is one of 308 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare U.S. Bancorp to related businesses based on the strength of its analyst recommendations, valuation, dividends, institutional ownership, earnings, risk and profitability.

Risk and Volatility

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 peers have a beta of 0.78, meaning that their average stock price is 22% less volatile than the S&P 500.

Insider and Institutional Ownership

74.0% of U.S. Bancorp shares are held by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are held by institutional investors. 0.4% of U.S. Bancorp shares are held by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

U.S. Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. 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 34.8% of their earnings in the form of a dividend. U.S. Bancorp has raised its dividend for 6 consecutive years.

Profitability

This table compares U.S. Bancorp and its peers’ 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 18.53% 8.29% 0.93%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Bancorp 2 10 3 0 2.07
U.S. Bancorp Competitors 2187 8479 8516 335 2.36

U.S. Bancorp presently has a consensus price target of $54.36, suggesting a potential downside of 0.32%. As a group, “Banks” companies have a potential downside of 9.98%. Given U.S. Bancorp’s higher possible upside, equities analysts plainly believe U.S. Bancorp is more favorable than its peers.

Valuation & Earnings

This table compares U.S. Bancorp and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
U.S. Bancorp $22.74 billion $5.89 billion 16.18
U.S. Bancorp Competitors $5.50 billion $827.87 million 386.95

U.S. Bancorp has higher revenue and earnings than its peers. U.S. Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

U.S. Bancorp beats its peers 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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