Head-To-Head Analysis: Bank of New York Mellon (NYSE:BK) vs. QCR (NASDAQ:QCRH)

QCR (NASDAQ:QCRHGet Free Report) and Bank of New York Mellon (NYSE:BKGet Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Institutional and Insider Ownership

70.0% of QCR shares are owned by institutional investors. Comparatively, 85.3% of Bank of New York Mellon shares are owned by institutional investors. 3.7% of QCR shares are owned by insiders. Comparatively, 0.1% of Bank of New York Mellon shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares QCR and Bank of New York Mellon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QCR 19.92% 13.47% 1.35%
Bank of New York Mellon 9.48% 11.80% 1.02%

Earnings & Valuation

This table compares QCR and Bank of New York Mellon’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QCR $343.36 million 2.87 $113.56 million $6.71 8.75
Bank of New York Mellon $17.39 billion 2.51 $3.29 billion $4.10 14.23

Bank of New York Mellon has higher revenue and earnings than QCR. QCR 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.

Analyst Recommendations

This is a summary of recent recommendations for QCR and Bank of New York Mellon, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QCR 0 0 3 0 3.00
Bank of New York Mellon 0 4 5 0 2.56

QCR presently has a consensus price target of $72.00, indicating a potential upside of 22.68%. Bank of New York Mellon has a consensus price target of $60.17, indicating a potential upside of 3.11%. Given QCR’s stronger consensus rating and higher possible upside, equities analysts clearly believe QCR is more favorable than Bank of New York Mellon.

Dividends

QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Bank of New York Mellon pays an annual dividend of $1.68 per share and has a dividend yield of 2.9%. QCR pays out 3.6% of its earnings in the form of a dividend. Bank of New York Mellon pays out 41.0% 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 raised its dividend for 13 consecutive years. Bank of New York Mellon is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

QCR has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Bank of New York Mellon has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Summary

QCR beats Bank of New York Mellon on 9 of the 17 factors compared between the two stocks.

About QCR

(Get Free Report)

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company's deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company's loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.

About Bank of New York Mellon

(Get Free Report)

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.

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