Head-To-Head Review: National Australia Bank (OTCMKTS:NABZY) vs. Commonwealth Bank of Australia (OTCMKTS:CMWAY)

Commonwealth Bank of Australia (OTCMKTS:CMWAY) and National Australia Bank (OTCMKTS:NABZY) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Earnings and Valuation

This table compares Commonwealth Bank of Australia and National Australia Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commonwealth Bank of Australia	$61.51 billion	2.68	$6.55 billion	N/A	N/A
National Australia Bank	$36.86 billion	2.19	$4.59 billion	N/A	N/A

Commonwealth Bank of Australia has higher revenue and earnings than National Australia Bank.

Risk & Volatility

Commonwealth Bank of Australia has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, National Australia Bank has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Commonwealth Bank of Australia shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Commonwealth Bank of Australia and National Australia Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commonwealth Bank of Australia	N/A	N/A	N/A
National Australia Bank	N/A	N/A	N/A

Dividends

Commonwealth Bank of Australia pays an annual dividend of $3.36 per share and has a dividend yield of 3.4%. National Australia Bank pays an annual dividend of $0.51 per share and has a dividend yield of 3.9%.

Analyst Recommendations

This is a summary of current ratings and price targets for Commonwealth Bank of Australia and National Australia Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commonwealth Bank of Australia	1	1	0	0	1.50
National Australia Bank	2	0	0	0	1.00

Commonwealth Bank of Australia currently has a consensus price target of $130.18, indicating a potential upside of 32.07%. National Australia Bank has a consensus price target of $38.00, indicating a potential upside of 188.75%. Given National Australia Bank’s higher possible upside, analysts clearly believe National Australia Bank is more favorable than Commonwealth Bank of Australia.

Summary

Commonwealth Bank of Australia beats National Australia Bank on 6 of the 8 factors compared between the two stocks.

About Commonwealth Bank of Australia

Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers transaction, savings, and foreign currency accounts; term deposits; personal and business loans; overdrafts; equipment finance; credit cards; international payment and trade; and private banking services, as well as home and car loans. It also provides institutional banking services; funds management, superannuation, and share broking products and services; home, car, health, life, income protection, and travel insurance products, as well as retail, premium, business, offshore services. In addition, the company offers advisory services for high-net-worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and international and foreign exchange services. Commonwealth Bank of Australia was founded in 1911 and is based in Sydney, Australia.

About National Australia Bank

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. It accepts transaction accounts, savings accounts, debit cards, and term deposits; and specialized accounts, such as foreign currency, business interest, cash maximiser, farm management, community free saver, statutory trust, and project bank accounts, as well as farm management deposits. In addition, the company provides home loans, personal loans, and business loans; vehicle and equipment finance; and trade and invoice finance, as well as business overdrafts and bank guarantees. Further, it offers insurance products consisting of home and content, landlord, travel, car, caravan and trailer, life, and business insurance products; and pension, self-managed super funds, cash management, and financial planning and advisory services. Additionally, the company provides investment products; credit, debit, and business cards; payments and merchant services; online and internet banking services; small business services; international and foreign exchange solutions; and industry specific banking services. The company was founded in 1834 and is based in Melbourne, Australia.