Bank of N.T. Butterfield & Son (NYSE:NTB) vs. National Australia Bank (OTCMKTS:NABZY) Head to Head Review

Bank of N.T. Butterfield & Son (NYSE:NTB) and National Australia Bank (OTCMKTS:NABZY) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Dividends

Bank of N.T. Butterfield & Son pays an annual dividend of $2.00 per share and has a dividend yield of 3.4%. National Australia Bank pays an annual dividend of $0.57 per share and has a dividend yield of 4.5%. Bank of N.T. Butterfield & Son pays out 34.6% of its earnings in the form of a dividend.

Volatility & Risk

Bank of N.T. Butterfield & Son has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, National Australia Bank has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Bank of N.T. Butterfield & Son and National Australia Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of N.T. Butterfield & Son	0	3	1	1	2.60
National Australia Bank	2	1	0	2	2.40

Bank of N.T. Butterfield & Son presently has a consensus target price of $56.33, indicating a potential downside of 4.43%. National Australia Bank has a consensus target price of $38.00, indicating a potential upside of 197.11%. Given National Australia Bank’s higher possible upside, analysts plainly believe National Australia Bank is more favorable than Bank of N.T. Butterfield & Son.

Insider & Institutional Ownership

62.7% of Bank of N.T. Butterfield & Son shares are owned by institutional investors. 1.2% of Bank of N.T. Butterfield & Son shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Bank of N.T. Butterfield & Son and National Australia Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of N.T. Butterfield & Son	30.22%	21.92%	1.72%
National Australia Bank	N/A	N/A	N/A

Valuation & Earnings

This table compares Bank of N.T. Butterfield & Son and National Australia Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of N.T. Butterfield & Son	$800.02 million	3.09	$231.94 million	$5.78	10.20
National Australia Bank	$38.78 billion	2.02	$4.35 billion	N/A	N/A

National Australia Bank has higher revenue and earnings than Bank of N.T. Butterfield & Son.

Summary

Bank of N.T. Butterfield & Son beats National Australia Bank on 8 of the 15 factors compared between the two stocks.

About Bank of N.T. Butterfield & Son

The Bank of N.T. Butterfield & Son Ltd. provides community banking and wealth management business. The firm operates through the following geographical segments: Bermuda, the Cayman Islands, Channel Islands and the UK, and Other. The Bermuda and Cayman segments offer retail banking and wealth management. The Channel Islands and the UK segment refers to the retail and corporate banking and wealth management. The Other segment includes operations in the jurisdictions of The Bahamas, Canada, Mauritius, Singapore and Switzerland. The company was founded in 1858 and is headquartered in Hamilton, Bermuda.

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.