Northern Trust consists of two moaty segments: wealth management and a custody business known asset servicing (previously corporate and institutional services or C&IS). Both segments are supported by the firm’s asset-management capabilities.
Northern Trust has built a strong wealth-management franchise. Its reputation and conservative capital allocation help its capture and retain ultrawealthy private banking clients. In addition, these wealth-management relationships are stickier and client AUM has less exposure to equities compared with other wealth managers.
Fee compression and lower margins in the asset-management industry will result in asset managers being more conscious of their costs, thus limiting the pricing power of custody banks.
|
Metric
|
NTRS
|
SEIC
|
|---|---|---|
Price/Earnings (Normalized) | 13.08 | 17.08 |
Price/Book Value | 1.54 | 3.79 |
Price/Sales | 2.61 | 4.42 |
Price/Cash Flow | 10.00 | 15.83 |
|
Metric
|
NTRS
|
SEIC
|
|---|---|---|
Quick Ratio | — | 5.42 |
Current Ratio | — | 5.63 |
Interest Coverage | — | 1,002.70 |
|
Metric
|
NTRS
|
SEIC
|
|---|---|---|
Return on Assets (Normalized) | 0.67% | 21.02% |
Return on Equity (Normalized) | 9.37% | 24.26% |
Return on Invested Capital (Normalized) | — | 22.41% |
|
1-Day Chart
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Morningstar Rating for Stocks
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