Woori Bank (NYSE:WF) vs. Raiffeisen Bank International (OTCMKTS:RAIFY) Critical Analysis

Woori Bank (NYSE:WF) and Raiffeisen Bank International (OTCMKTS:RAIFY) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Woori Bank and Raiffeisen Bank International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woori Bank	0	0	1	1	3.50
Raiffeisen Bank International	0	1	0	1	3.00

Volatility and Risk

Woori Bank has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Raiffeisen Bank International has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Dividends

Woori Bank pays an annual dividend of $1.27 per share and has a dividend yield of 2.0%. Raiffeisen Bank International pays an annual dividend of $0.18 per share and has a dividend yield of 1.7%. Woori Bank pays out 14.6% of its earnings in the form of a dividend. Raiffeisen Bank International pays out 16.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Woori Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

3.4% of Woori Bank shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Woori Bank and Raiffeisen Bank International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Woori Bank	13.49%	8.74%	0.57%
Raiffeisen Bank International	10.91%	6.19%	0.65%

Valuation and Earnings

This table compares Woori Bank and Raiffeisen Bank International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woori Bank	$16.27 billion	0.98	$2.19 billion	$8.67	7.51
Raiffeisen Bank International	$14.76 billion	0.96	$1.55 billion	$1.08	9.97

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

Summary

Woori Bank beats Raiffeisen Bank International on 11 of the 14 factors compared between the two stocks.

About Woori Bank

Woori Financial Group Inc., a financial holding company, operates as a commercial bank that provides a range of financial products and services to individuals, corporations, and small- and medium-sized enterprises in Korea. It operates through Banking, Credit Card, Capital, Investment Banking, and Others segments. The company offers savings, demand, installment, and time deposits; certificates of deposit; repurchase instruments; and working capital, facilities, general purpose household, mortgage, and home equity loans. It also provides debit and credit cards, cash services, card loans, and related services; lease financing; and securities operation, sale of financial instruments, project financing, and other related solutions. In addition, the company offers credit purchase, cash advance, credit card loans, foreign exchange services and dealing, import and export-related services, offshore lending, syndicated loans and foreign currency securities investment, investment trust products, bancassurance, and private equity funds. Further, it is involved in the real estate trust, system software development and maintenance, financing, credit information, securities investment and trading, derivatives trading, trust, asset securitization, investment and international banking, money transfer, and other services. Additionally, the company offers automated telephone, internet, and mobile banking services; and trust management, trustee, and custodian services. Woori Financial Group Inc. was founded in 1899 and is headquartered in Seoul, South Korea.

About Raiffeisen Bank International

Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.