Credicorp (NYSE: BAP) and Renasant Corporation (NASDAQ:RNST) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

66.4% of Credicorp shares are held by institutional investors. Comparatively, 62.1% of Renasant Corporation shares are held by institutional investors. 15.9% of Credicorp shares are held by insiders. Comparatively, 3.9% of Renasant Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Credicorp and Renasant Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Credicorp 0 2 2 0 2.50
Renasant Corporation 0 2 0 0 2.00

Credicorp currently has a consensus target price of $222.00, indicating a potential upside of 6.30%. Renasant Corporation has a consensus target price of $43.50, indicating a potential upside of 2.62%. Given Credicorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Credicorp is more favorable than Renasant Corporation.

Profitability

This table compares Credicorp and Renasant Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Credicorp 24.24% 17.78% 2.26%
Renasant Corporation 20.31% 8.31% 1.17%

Volatility & Risk

Credicorp has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Renasant Corporation has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Dividends

Credicorp pays an annual dividend of $12.29 per share and has a dividend yield of 5.9%. Renasant Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. Credicorp pays out 89.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Renasant Corporation pays out 32.6% of its earnings in the form of a dividend. Credicorp has raised its dividend for 2 consecutive years. Credicorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Credicorp and Renasant Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Credicorp N/A N/A N/A $13.76 15.18
Renasant Corporation $434.66 million 4.81 $108.99 million $2.21 19.18

Renasant Corporation has higher revenue and earnings than Credicorp. Credicorp is trading at a lower price-to-earnings ratio than Renasant Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Credicorp beats Renasant Corporation on 11 of the 14 factors compared between the two stocks.

About Credicorp

Credicorp Ltd. is a financial services holding company in Peru. The Company has four operating segments based on its products and services, which include banking, insurance, pension funds and investment banking. Its operating subsidiaries include Banco de Credito del Peru; Atlantic Security Bank, which it holds through Atlantic Security Holding Corporation; El Pacifico-Peruano Suiza Compania de Seguros y Reaseguros (Grupo Pacifico); Prima AFP S.A., and Credicorp Capital Ltd. (Credicorp Capital). Its banking business is focused on commercial and consumer loans, credit facilities, deposits, current accounts and credit cards. The Company conducts its insurance business through Grupo Pacifico. It conducts all of its pension fund activities through its private pension fund administrator Prima AFP S.A. The investment banking business units are grouped under Credicorp Capital, which carries its business under asset management, sales and trading, and corporate finance business lines.

About Renasant Corporation

Renasant Corporation is a bank holding company that owns and operates Renasant Bank (the Bank) and Renasant Insurance, Inc. (Renasant Insurance). The Company’s segments include Community Banks, which delivers a range of banking and financial services to individuals and small to medium-sized businesses, including checking and savings accounts, business and personal loans, equipment leasing, as well as safe deposit and night depository facilities; Insurance, which includes a full service insurance agency offering all lines of commercial and personal insurance through major carriers; Wealth Management, which offers a range of fiduciary services that includes the administration and management of trust accounts, including personal and corporate benefit accounts, and custodial accounts, and Other. The Bank has its operations in Mississippi, Tennessee, Alabama, Florida and Georgia. Renasant Insurance has its operations in Mississippi. Renasant Insurance is a subsidiary of the Bank.

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