Contrasting Northern Trust (NASDAQ:NTRS) & TOP Financial Group (NASDAQ:TOP)

TOP Financial Group (NASDAQ:TOP) and Northern Trust (NASDAQ:NTRS) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Valuation & Earnings

This table compares TOP Financial Group and Northern Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOP Financial Group	$4.72 million	438.36	-$1.17 million	($0.02)	-850.00
Northern Trust	$14.30 billion	2.26	$1.74 billion	$12.76	13.97

Northern Trust has higher revenue and earnings than TOP Financial Group. TOP Financial Group is trading at a lower price-to-earnings ratio than Northern Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TOP Financial Group and Northern Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOP Financial Group	N/A	N/A	N/A
Northern Trust	15.86%	17.97%	1.27%

Volatility & Risk

TOP Financial Group has a beta of -0.82, meaning that its stock price is 182% less volatile than the S&P 500. Comparatively, Northern Trust has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for TOP Financial Group and Northern Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOP Financial Group	1	0	0	0	1.00
Northern Trust	2	11	2	0	2.00

Northern Trust has a consensus price target of $181.03, suggesting a potential upside of 1.57%. Given Northern Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Northern Trust is more favorable than TOP Financial Group.

Insider and Institutional Ownership

0.3% of TOP Financial Group shares are held by institutional investors. Comparatively, 83.2% of Northern Trust shares are held by institutional investors. 85.6% of TOP Financial Group shares are held by company insiders. Comparatively, 0.7% of Northern Trust shares are held by company 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.

Summary

Northern Trust beats TOP Financial Group on 12 of the 14 factors compared between the two stocks.

About TOP Financial Group

TOP Financial Group Limited is a financial services holding company that provides online brokerage services through its subsidiaries. Its offerings include securities brokerage and futures brokerage, serving individual and institutional clients. The company’s operations are based in Hong Kong, where its subsidiaries are licensed to provide financial services. Its trading services cover securities and futures markets, including markets in Hong Kong and the United States. Previously known as Zhong Yang Financial Group Limited, the company adopted the TOP Financial Group name in 2022.

About Northern Trust

Northern Trust Corporation is a financial services company headquartered in Chicago. Founded in 1889, it provides services to institutions, corporations, governments, and individuals and families. The company’s businesses include asset servicing, asset management, wealth management, and banking. Its services include investment management, custody and administration, fiduciary services, banking, and financial planning. Northern Trust serves clients in the United States and internationally, with operations across multiple regions.