Oppenheimer (NYSE:OPY) vs. Bank of New York Mellon (NYSE:BNY) Head to Head Analysis

Bank of New York Mellon (NYSE:BNY) and Oppenheimer (NYSE:OPY) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of New York Mellon	$40.76 billion	2.55	$5.55 billion	$8.59	17.82
Oppenheimer	$1.64 billion	0.75	$148.40 million	$8.86	12.93

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bank of New York Mellon	15.52%	16.00%	1.27%
Oppenheimer	5.72%	19.51%	4.86%

Analyst Ratings

This is a summary of current recommendations and price targets for Bank of New York Mellon and Oppenheimer, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of New York Mellon	0	6	10	1	2.71
Oppenheimer	0	0	2	0	3.00

Bank of New York Mellon presently has a consensus target price of $157.13, suggesting a potential upside of 2.65%. Given Bank of New York Mellon’s higher possible upside, equities research analysts clearly believe Bank of New York Mellon is more favorable than Oppenheimer.

Institutional & Insider Ownership

85.3% of Bank of New York Mellon shares are held by institutional investors. Comparatively, 32.3% of Oppenheimer shares are held by institutional investors. 0.2% of Bank of New York Mellon shares are held by company insiders. Comparatively, 34.9% of Oppenheimer shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Bank of New York Mellon pays an annual dividend of $2.52 per share and has a dividend yield of 1.6%. Oppenheimer pays an annual dividend of $0.80 per share and has a dividend yield of 0.7%. Bank of New York Mellon pays out 29.3% of its earnings in the form of a dividend. Oppenheimer pays out 9.0% 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 14 consecutive years and Oppenheimer has raised its dividend for 1 consecutive years. Bank of New York Mellon is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Bank of New York Mellon has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Oppenheimer has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Summary

Bank of New York Mellon beats Oppenheimer on 11 of the 18 factors compared between the two stocks.

About Bank of New York Mellon

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.

About Oppenheimer

Oppenheimer Holdings Inc. operates as a middle-market investment bank and full-service broker-dealer in the Americas, Europe, the Middle East, and Asia. The company provides brokerage services covering corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, exchange-traded funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It offers asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, non-discretionary investment advisory and consultation services, alternative investments, portfolio enhancement programs, and institutional taxable fixed income portfolio management strategies and solutions, as well as taxable and non-taxable fixed income portfolios and strategies. In addition, the company offers investment banking services, such as strategic advisory services and capital markets products; merger and acquisition, equities capital market, debt capital market, debt advisory and restructuring, and fund placement services; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, event driven sales and trading, and portfolio and electronic trading. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; and proprietary trading and investment activities. Additionally, the company offers underwriting, market-making, trust, and discount services, as well as a cloud-based financial market. It serves high-net-worth individuals and families, corporate executives, public and private businesses, institutions and corporations, governments, financial sponsors, and domestic and international investors. Oppenheimer Holdings Inc. was founded in 1881 and is headquartered in New York, New York.