Contrasting DNP Select Income Fund (NYSE:DNP) & Bank of New York Mellon (NYSE:BNY)

DNP Select Income Fund (NYSE:DNP) and Bank of New York Mellon (NYSE:BNY) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for DNP Select Income Fund and Bank of New York Mellon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNP Select Income Fund	0	0	0	0	0.00
Bank of New York Mellon	0	5	10	2	2.82

Bank of New York Mellon has a consensus target price of $156.47, suggesting a potential downside of 0.09%. Given Bank of New York Mellon’s stronger consensus rating and higher probable upside, analysts plainly believe Bank of New York Mellon is more favorable than DNP Select Income Fund.

Dividends

DNP Select Income Fund pays an annual dividend of $0.78 per share and has a dividend yield of 7.3%. Bank of New York Mellon pays an annual dividend of $2.52 per share and has a dividend yield of 1.6%. Bank of New York Mellon pays out 29.3% of its earnings in the form of a dividend. Bank of New York Mellon has raised its dividend for 14 consecutive years.

Risk and Volatility

DNP Select Income Fund has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Bank of New York Mellon has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Earnings and Valuation

This table compares DNP Select Income Fund and Bank of New York Mellon”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DNP Select Income Fund	N/A	N/A	N/A	N/A	N/A
Bank of New York Mellon	$40.76 billion	2.64	$5.55 billion	$8.59	18.23

Bank of New York Mellon has higher revenue and earnings than DNP Select Income Fund.

Profitability

This table compares DNP Select Income Fund and Bank of New York Mellon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DNP Select Income Fund	N/A	N/A	N/A
Bank of New York Mellon	15.52%	16.00%	1.27%

Institutional & Insider Ownership

8.5% of DNP Select Income Fund shares are held by institutional investors. Comparatively, 85.3% of Bank of New York Mellon shares are held by institutional investors. 0.0% of DNP Select Income Fund shares are held by company insiders. Comparatively, 0.2% of Bank of New York Mellon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Bank of New York Mellon beats DNP Select Income Fund on 12 of the 14 factors compared between the two stocks.

About DNP Select Income Fund

DNP Select Income Fund Inc. is a closed ended balanced mutual fund launched by Virtus Investment Partners, Inc. The fund is managed by Duff & Phelps Investment Management Co. It invests in the public equity and fixed income markets of the United States. For the fixed income portion, the fund invests in bonds. It seeks to invest in stocks of companies operating in the Utility sector. The fund invests in stocks of companies across all market capitalizations. It benchmarks the performance of its portfolio against the S&P 500 Utilities Index and Barclays Capital U.S. Utility Bond Index. DNP Select Income Fund Inc. was formed on November 26, 1986 and is domiciled in the United States.

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.