Financial Analysis: National Bank of Canada (OTCMKTS:NTIOF) versus CR AGRICOLE S A/ADR (OTCMKTS:CRARY)
National Bank of Canada (OTCMKTS:NTIOF) and CR AGRICOLE S A/ADR (OTCMKTS:CRARY) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
0.1% of National Bank of Canada shares are held by institutional investors. Comparatively, 0.3% of CR AGRICOLE S A/ADR shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent recommendations and price targets for National Bank of Canada and CR AGRICOLE S A/ADR, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Bank of Canada||1||3||1||0||2.00|
|CR AGRICOLE S A/ADR||0||1||2||0||2.67|
National Bank of Canada presently has a consensus target price of $64.00, suggesting a potential upside of 33.58%. Given National Bank of Canada’s higher possible upside, research analysts clearly believe National Bank of Canada is more favorable than CR AGRICOLE S A/ADR.
National Bank of Canada pays an annual dividend of $2.01 per share and has a dividend yield of 4.2%. CR AGRICOLE S A/ADR pays an annual dividend of $0.27 per share and has a dividend yield of 4.6%. National Bank of Canada pays out 43.1% of its earnings in the form of a dividend. CR AGRICOLE S A/ADR pays out 32.9% 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. CR AGRICOLE S A/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares National Bank of Canada and CR AGRICOLE S A/ADR’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National Bank of Canada||$8.33 billion||1.93||$1.67 billion||$4.66||10.28|
|CR AGRICOLE S A/ADR||$23.19 billion||1.43||$5.20 billion||$0.82||7.12|
CR AGRICOLE S A/ADR has higher revenue and earnings than National Bank of Canada. CR AGRICOLE S A/ADR is trading at a lower price-to-earnings ratio than National Bank of Canada, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
National Bank of Canada has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, CR AGRICOLE S A/ADR has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
This table compares National Bank of Canada and CR AGRICOLE S A/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Bank of Canada||18.84%||18.26%||0.83%|
|CR AGRICOLE S A/ADR||22.28%||6.68%||0.27%|
CR AGRICOLE S A/ADR beats National Bank of Canada on 9 of the 15 factors compared between the two stocks.
National Bank of Canada Company Profile
National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It operates through Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International segments. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, savings options, and tailored investment solutions; various insurance products; and commercial banking services, such as credit, and deposit and investment solutions, as well as international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complementary services. The Wealth Management segment provides investment solutions, trust services, banking services, lending services, and other wealth management solutions through internal and third-party distribution networks. The Financial Markets segment offers risk management products and services; and debt and equity underwriting; advisory services in the areas of mergers and acquisitions, and financing. The U.S. Specialty Finance and International segments provides specialty finance expertise; financial products and services to individuals and businesses in Cambodia; and the activities of targeted investments in certain emerging markets. The company provides its services through a network of 428 branches and 937 banking machines. The company was founded in 1859 and is headquartered in Montreal, Canada.
CR AGRICOLE S A/ADR Company Profile
Crédit Agricole S.A. provides retail, corporate, insurance, and investment banking products and services worldwide. It operates through five segments: Asset Gathering; French Retail Banking – LCL; International Retail Banking; Specialised Financial Services; and Large Customers. The company offers payment instruments, loans, and saving products; savings/retirement, death and disability/creditor/group, and property and casualty insurance products; and expertise and investment solutions for active, passive, real estate, and alternative asset management. It also provides wealth management services that allow individual customers to manage, protect, and transfer their assets; and consumer finance and flow management services. In addition, the company offers financing solutions for property and equipment investment and renewal requirements; trade receivable financing and management solutions for corporates; and financing services for renewable energy and public infrastructure projects, as well as leasing services. Further, it provides investment banking, structured finance, international trade finance, commercial banking, capital market, and syndication services; and asset servicing solutions for investment products, as well as various asset classes, such as execution, clearing, custody, fund administration, middle-office, forex, security lending and borrowing, and fund distribution support and services to issuers. Crédit Agricole S.A. serves retail and corporate customers, banks and financial institutions, government agencies, and local authorities. The company is based in Montrouge, France. Crédit Agricole S.A. is a subsidiary of SAS Rue La Boétie.
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