National Bank of Canada (OTCMKTS:NTIOF) and Woori Financial Group (NYSE:WF) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Analyst Ratings

This is a summary of current ratings for National Bank of Canada and Woori Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Bank of Canada 1 2 3 0 2.33
Woori Financial Group 0 2 0 0 2.00

National Bank of Canada currently has a consensus price target of $61.40, indicating a potential upside of 67.91%. Given National Bank of Canada’s stronger consensus rating and higher possible upside, equities analysts plainly believe National Bank of Canada is more favorable than Woori Financial Group.

Dividends

National Bank of Canada pays an annual dividend of $2.12 per share and has a dividend yield of 5.8%. Woori Financial Group pays an annual dividend of $1.44 per share and has a dividend yield of 7.4%. Woori Financial Group pays out 20.7% of its earnings in the form of a dividend. Woori Financial Group has raised its dividend for 2 consecutive years. Woori Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

National Bank of Canada has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Woori Financial Group has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Profitability

This table compares National Bank of Canada and Woori Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Bank of Canada 19.05% 18.52% 0.84%
Woori Financial Group 15.62% 7.94% 0.52%

Insider & Institutional Ownership

0.0% of National Bank of Canada shares are held by institutional investors. Comparatively, 0.9% of Woori Financial Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares National Bank of Canada and Woori Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Bank of Canada $9.04 billion 1.36 $1.70 billion N/A N/A
Woori Financial Group $9.18 billion 0.48 $1.62 billion $6.96 2.80

National Bank of Canada has higher earnings, but lower revenue than Woori Financial Group.

Summary

National Bank of Canada beats Woori Financial Group on 11 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.

Woori Financial Group Company Profile

Woori Financial Group Inc. provides commercial banking products and services to retail and individual customers, and corporations. The company offers salary, fixed deposit, savings, and ordinary and business deposit products; and professional, deposit mortgage, apartment, and mortgage loans, as well as corporate operating, facility, and policy loans. It also provides inquiry and retirement pension, bulk and automatic transfer, cash management, and foreign direct investment services. In addition, the company offers foreign currency, specialized remittance, expat banking, foreign exchange inquiry, exchange limit information, foreign currency remittance information, and foreign currency deposit information services; and other products and services, including insurance, fund, and custody services, as well as banking management services. Further, it provides system software development and maintenance, finance, other credit finance, credit information, security investment, and other services. As of June 30, 2018, the company operated approximately 880 branches and offices in Korea, and 23 branches and offices internationally. Woori Financial Group Inc. was founded in 1899 and is headquartered in Seoul, South Korea.

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