Commonwealth Bank of Australia (OTCMKTS:CMWAY) and Itau Unibanco (NYSE:ITUB) Head-To-Head Comparison

Itau Unibanco (NYSE:ITUB) and Commonwealth Bank of Australia (OTCMKTS:CMWAY) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Earnings & Valuation

This table compares Itau Unibanco and Commonwealth Bank of Australia”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Itau Unibanco	$30.04 billion	3.26	$8.03 billion	$0.70	12.65
Commonwealth Bank of Australia	$61.51 billion	3.39	$6.55 billion	N/A	N/A

Itau Unibanco has higher earnings, but lower revenue than Commonwealth Bank of Australia.

Analyst Ratings

This is a summary of current ratings and target prices for Itau Unibanco and Commonwealth Bank of Australia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Itau Unibanco	0	2	2	0	2.50
Commonwealth Bank of Australia	1	1	0	0	1.50

Itau Unibanco currently has a consensus price target of $9.00, suggesting a potential upside of 1.64%. Commonwealth Bank of Australia has a consensus price target of $130.18, suggesting a potential upside of 4.39%. Given Commonwealth Bank of Australia’s higher possible upside, analysts plainly believe Commonwealth Bank of Australia is more favorable than Itau Unibanco.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Itau Unibanco	20.64%	20.83%	1.55%
Commonwealth Bank of Australia	N/A	N/A	N/A

Institutional & Insider Ownership

0.0% of Commonwealth Bank of Australia shares are held by institutional investors. 0.6% of Itau Unibanco shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Itau Unibanco pays an annual dividend of $0.03 per share and has a dividend yield of 0.3%. Commonwealth Bank of Australia pays an annual dividend of $3.17 per share and has a dividend yield of 2.5%. Itau Unibanco pays out 4.3% of its earnings in the form of a dividend.

Volatility & Risk

Itau Unibanco has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Commonwealth Bank of Australia has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

About Itau Unibanco

Itaú Unibanco Holding S.A. offers a range of financial products and services to individuals and corporate customers in Brazil and internationally. The company operates through three segments: Retail Banking, Wholesale Banking, and Activities with the Market + Corporation. It offers current account; loans; credit and debit cards; investment and commercial banking services; real estate lending services; financing and investment services; economic, financial and brokerage advisory; and leasing and foreign exchange services. The company also provides property and casualty insurance products covering loss, damage, or liabilities for assets or persons, as well as life insurance products covering death and personal accident. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and small companies, as well as middle-market companies and high net worth clients. The company was formerly known as Itaú Unibanco Banco Múltiplo S.A. and changed its name to Itaú Unibanco Holding S.A. in April 2009. The company was incorporated in 1924 and is headquartered in São Paulo, Brazil. Itaú Unibanco Holding S.A. operates as a subsidiary of IUPAR – Itaú Unibanco Participações S.A.

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.