Raiffeisen Bank International (OTCMKTS:RAIFY) versus Erste Group Bank (OTCMKTS:EBKDY) Head-To-Head Review

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Erste Group Bank and Raiffeisen Bank International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Erste Group Bank	0	4	3	1	2.63
Raiffeisen Bank International	0	1	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Erste Group Bank	17.36%	9.85%	0.89%
Raiffeisen Bank International	-0.14%	3.09%	0.32%

Dividends

Erste Group Bank pays an annual dividend of $1.17 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 1.6%. Erste Group Bank pays out 28.1% of its earnings in the form of a dividend. Raiffeisen Bank International pays out 25.4% 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.

Volatility & Risk

Erste Group Bank has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Raiffeisen Bank International has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Erste Group Bank and Raiffeisen Bank International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Erste Group Bank	$20.43 billion	2.40	$3.38 billion	$4.16	14.35
Raiffeisen Bank International	$15.33 billion	0.97	$1.25 billion	$0.71	15.95

Erste Group Bank has higher revenue and earnings than Raiffeisen Bank International. Erste Group 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.

Institutional & Insider Ownership

0.4% of Erste Group Bank shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Erste Group Bank beats Raiffeisen Bank International on 12 of the 15 factors compared between the two stocks.

About Erste Group Bank

Erste Group Bank AG provides a range of banking and other financial services to retail, corporate, and public sector customers. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management & Local Corporate Center, Savings Banks, and Group Corporate Center segments. It provides mortgage and consumer loans, investment products, current accounts, savings products, and credit cards, as well as cross selling products, such as leasing, insurance, and building society products. The company also offers factoring and accounts receivable purchasing; investment, acquisition and leveraged, project, and commercial real estate finance; interest rate and currency hedging, letters of credit, documentary collections, and guarantees; account management, payments, digital-banking, cash logistics, and payment factory and cash pooling services; documentary collection, equity interests and investments, revolving export credits lines, letters of credit, customer financing, and export guarantee; and loan syndication, and debt and equity capital market services. In addition, it provides cash management, trade finance, customer referral, markets execution, debt capital markets, and custody and brokerage services. Further, the company offers corporate finance; portfolio management; trading and market; trade execution, market making, and short-term liquidity management; and asset/liability management services, as well as working capital and bridge loans. It operates in Austria, the Czech Republic, Slovakia, Romania, Hungary, Serbia, Croatia, and internationally. The company was founded in 1819 and is headquartered in Vienna, Austria.

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.