NU (NYSE:NU – Get Free Report) and ICICI Bank (NYSE:IBN – Get Free Report) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
84.0% of NU shares are held by institutional investors. Comparatively, 18.2% of ICICI Bank shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for NU and ICICI Bank, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NU | 0 | 2 | 12 | 0 | 2.86 |
| ICICI Bank | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares NU and ICICI Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NU | 18.19% | 30.68% | 4.72% |
| ICICI Bank | 24.57% | 14.17% | 1.83% |
Volatility and Risk
NU has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, ICICI Bank has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.
Valuation and Earnings
This table compares NU and ICICI Bank”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NU | $15.77 billion | 4.13 | $2.87 billion | $0.58 | 23.32 |
| ICICI Bank | $22.68 billion | 3.98 | $6.02 billion | $1.58 | 15.95 |
ICICI Bank has higher revenue and earnings than NU. ICICI Bank 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 ICICI Bank on 9 of the 13 factors compared between the two stocks.
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.
About ICICI Bank
ICICI Bank Limited provides various banking products and services in India and internationally. It operates through Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, and Others segments. The company offers savings, salary, pension, current, and other accounts; and time, fixed, recurring, and security deposits services. It also provides home, car, two-wheeler, personal, gold, and commercial business loans, as well as loans against securities and other loans; business loans, including working capital finance, term loans, collateral free loans, loans without financials, finance for importers and exporters, and overdraft facilities, as well as loans for new entities and card swipes; and credit, debit, prepaid, travel, forex, and corporate cards. In addition, the company offers pockets wallet; fixed income products; investment products, such as mutual funds, gold monetization schemes, initial public offerings, and other online investment services; and agri and rural business, farmer finance, tractor loans, and micro banking services, as well as other services to agri corporates. Further, it provides portfolio management, trade, foreign exchange, locker, private and NRI banking, and cash management services; family wealth and demat accounts; commercial and investment banking, capital market, custodial, and institutional banking services; health, personal accident, fire, and motor insurance, as well as distributes general and life insurance products; and Internet, mobile, and phone banking services. Additionally, the company offers securities investment, broking, trading, and underwriting services; and merchant banking, trusteeship, housing finance, pension fund management, asset management, investment advisory, points of presence, and private equity/venture capital fund management services. ICICI Bank Limited was founded in 1955 and is headquartered in Mumbai, India.
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