NU (NYSE:NU) & Agri Bank China (OTCMKTS:ACGBY) Head-To-Head Review

Agri Bank China (OTCMKTS:ACGBY) and NU (NYSE:NU) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

84.0% of NU shares are held by institutional investors. 1.2% of NU shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Agri Bank China and NU’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agri Bank China	21.14%	9.25%	0.63%
NU	17.97%	30.12%	4.66%

Risk and Volatility

Agri Bank China has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, NU has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Agri Bank China and NU, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agri Bank China	0	0	0	0	0.00
NU	0	3	10	1	2.86

NU has a consensus target price of $18.04, suggesting a potential upside of 8.61%. Given NU’s stronger consensus rating and higher probable upside, analysts plainly believe NU is more favorable than Agri Bank China.

Valuation and Earnings

This table compares Agri Bank China and NU”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agri Bank China	$195.64 billion	1.27	$39.24 billion	$2.70	6.56
NU	$11.52 billion	6.95	$1.97 billion	$0.51	32.57

Agri Bank China has higher revenue and earnings than NU. Agri Bank China is trading at a lower price-to-earnings ratio than NU, indicating that it is currently the more affordable of the two stocks.

Summary

NU beats Agri Bank China on 11 of the 15 factors compared between the two stocks.

About Agri Bank China

Agricultural Bank of China Limited, together with its subsidiaries, provides banking products and services. The company operates through Corporate Banking, Personal Banking, and Treasury Operations segments. It offers demand, personal call, foreign currency call, time or demand optional, foreign exchange call, foreign exchange time, savings, agreed term, and negotiated deposit accounts, as well as certificates of deposit; and loans, including housing, consumer, business, fixed asset, working capital, real estate, and entrusted syndicated loans, as well as trade finances, guarantees and commitments, and loans with custody of export rebates accounts. The company provides credit card, debit card, payment and settlement, private banking, cash management, investment banking, custody, financial market, and financial institution services, as well as trading and wealth management services; and personal fund collection and automatic transfer services. In addition, it offers agro-related personal and corporate banking products and services; telephone, mobile, self-service, television, and SMS banking services; financial leasing services; fund management services; asset custodian services; and insurance and reinsurance related products and services. The company operates domestic branches, including specialized institutions, training institutes, tier-1 branches, tier-2 branches, tier-1 sub-branches, foundation-level branch outlets and other establishments; overseas branches in Hong Kong, Singapore, Seoul, New York, Dubai International Financial Centre, Tokyo, Frankfurt, Sydney, Luxemburg, Dubai, London, Macao, and Hanoi; and overseas representative offices in Vancouver, Taipei, Sao Paulo, and Dushanbe. The company was founded in 1951 and is based in Beijing, the People's Republic of China.

About NU

Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.