Bank Of New York Mellon Stock Hold Recommendation Reiterated (BK)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK (TheStreet) -- Bank of New York Mellon (NYSE:BK) has been reiterated by TheStreet Ratings as a hold with a ratings score of C+ . The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

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Highlights from the ratings report include:

• The gross profit margin for BANK OF NEW YORK MELLON CORP is currently very high, coming in at 96.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.40% trails the industry average.
• Despite the weak revenue results, BK has outperformed against the industry average of 29.7%. Since the same quarter one year prior, revenues slightly dropped by 5.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Capital Markets industry. The net income has significantly decreased by 36.6% when compared to the same quarter one year ago, falling from $735.00 million to $466.00 million.
• The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Capital Markets industry and the overall market, BANK OF NEW YORK MELLON CORP's return on equity is below that of both the industry average and the S&P 500.

The Bank of New York Mellon Corporation, a financial services company, provides various products and services worldwide. The company offers a range of equity, fixed income, cash, and alternative/overlay products, as well as distributes investment management products. The company has a P/E ratio of 12, equal to the average financial services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Bank of New York Mellon has a market cap of $26.59 billion and is part of the financial sector and financial services industry. Shares are up 11.7% year to date as of the close of trading on Wednesday.

You can view the full Bank of New York Mellon Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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