National Australia Bank (OTCMKTS:NABZY) & Credicorp (NYSE:BAP) Financial Analysis

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

Institutional and Insider Ownership

89.8% of Credicorp shares are held by institutional investors. 15.9% of Credicorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Credicorp and National Australia Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credicorp	0	2	5	0	2.71
National Australia Bank	2	1	0	2	2.40

Credicorp currently has a consensus target price of $356.40, suggesting a potential upside of 11.11%. National Australia Bank has a consensus target price of $38.00, suggesting a potential upside of 198.27%. Given National Australia Bank’s higher probable upside, analysts plainly believe National Australia Bank is more favorable than Credicorp.

Dividends

Credicorp pays an annual dividend of $14.47 per share and has a dividend yield of 4.5%. National Australia Bank pays an annual dividend of $0.57 per share and has a dividend yield of 4.5%. Credicorp pays out 55.8% of its earnings in the form of a dividend. Credicorp has increased its dividend for 3 consecutive years. Credicorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Credicorp has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, National Australia Bank has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Earnings & Valuation

This table compares Credicorp 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
Credicorp	$24.61 billion	1.23	$1.94 billion	$25.94	12.37
National Australia Bank	$38.78 billion	2.01	$4.35 billion	N/A	N/A

National Australia Bank has higher revenue and earnings than Credicorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credicorp	24.81%	20.61%	2.91%
National Australia Bank	N/A	N/A	N/A

Summary

Credicorp beats National Australia Bank on 9 of the 16 factors compared between the two stocks.

About Credicorp

Credicorp Ltd. provides various financial, insurance, and health services and products primarily in Peru and internationally. It operates through Universal Banking, Insurance and Pensions, Microfinance, and Investment Banking and Equity Management segments. The Universal Banking segment grants various credits and financial instruments to individuals and legal entities; and various deposits and current accounts. The Insurance and Pensions segment issues insurance policies to cover losses in commercial property, transport, marine vessels, automobiles, life, health, and pensions; and management services for private pension funds. The Microfinance segment provides management of loans, deposits, and current accounts for small and microenterprises. The Investment Banking and Equity Management segment is involved in provision of brokerage and investment management services for corporations, institutional investors, governments, and foundations; structuring and placement of issues in the primary market; execution and negotiation of transactions in the secondary market; and structuring of securitization processes for corporate customers and manages mutual funds. The company was founded in 1889 and is headquartered in Lima, Peru.

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.