Contrasting Northern Trust (NASDAQ:NTRS) and Future FinTech Group (NASDAQ:FTFT)
by Danessa Lincoln · The Markets DailyFuture FinTech Group (NASDAQ:FTFT – Get Free Report) and Northern Trust (NASDAQ:NTRS – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Insider & Institutional Ownership
0.2% of Future FinTech Group shares are owned by institutional investors. Comparatively, 83.2% of Northern Trust shares are owned by institutional investors. 1.5% of Future FinTech Group shares are owned by company insiders. Comparatively, 0.7% of Northern Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Future FinTech Group and Northern Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Future FinTech Group | -157.53% | -12.22% | -10.08% |
| Northern Trust | 14.76% | 16.91% | 1.18% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Future FinTech Group and Northern Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Future FinTech Group | 1 | 0 | 0 | 0 | 1.00 |
| Northern Trust | 2 | 9 | 4 | 0 | 2.13 |
Northern Trust has a consensus target price of $180.96, suggesting a potential upside of 6.95%. Given Northern Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Northern Trust is more favorable than Future FinTech Group.
Risk and Volatility
Future FinTech Group has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Northern Trust has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.
Earnings & Valuation
This table compares Future FinTech Group and Northern Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Future FinTech Group | $3.83 million | 8.23 | -$4.62 million | ($30.16) | -0.11 |
| Northern Trust | $14.30 billion | 2.16 | $1.74 billion | $11.65 | 14.52 |
Northern Trust has higher revenue and earnings than Future FinTech Group. Future FinTech 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.
Summary
Northern Trust beats Future FinTech Group on 11 of the 14 factors compared between the two stocks.
About Future FinTech Group
Future FinTech Group Inc., through its subsidiaries, operates online shopping platforms in People’s Republic of China. It operates in three segments: Supply Chain Financing Service and Trading Business, Asset Management Service, and Others. The company offers cross-border money transfer service, brokerage and investment banking, and cryptocurrency mining farm business. It also engages in the trading of coal, aluminum ingots, sand, and steel; and E-commerce, digital wallet safety management, blockchain code auditing and operations, cryptocurrency mining, metaverse and big data maintenance services. The company was formerly known as SkyPeople Fruit Juice, Inc. and changed its name to Future FinTech Group Inc. in June 2017. Future FinTech Group Inc. is headquartered in New York, New York.
About Northern Trust
Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. It operates in two segments, Asset Servicing and Wealth Management. The Asset Servicing segment offers asset servicing and related services, including custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefit services, securities lending, foreign exchange, treasury management, brokerage services, transition management services, banking, and cash management services. This segment serves corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors. The Wealth Management segment offers trust, investment management, custody, and philanthropic; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking services. This segment serves high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately held businesses. The company also provides asset management services, such as active and passive equity; active and passive fixed income; cash management; muti-asset and alternative asset classes comprising private equity and hedge funds of funds; and multi-manager advisory services and products through separately managed accounts, bank common and collective funds, registered investment companies, exchange traded funds, non-U.S. collective investment funds, and unregistered private investment funds. In addition, it offers overlay and other risk management services. Northern Trust Corporation was founded in 1889 and is headquartered in Chicago, Illinois.