Capital One Financial (NYSE:COF) and Joint Stock Company Kaspi.kz (NASDAQ:KSPI) Critical Analysis

Capital One Financial (NYSE:COF) and Joint Stock Company Kaspi.kz (NASDAQ:KSPI) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

89.8% of Capital One Financial shares are owned by institutional investors. Comparatively, 32.2% of Joint Stock Company Kaspi.kz shares are owned by institutional investors. 0.8% of Capital One Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Capital One Financial and Joint Stock Company Kaspi.kz, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital One Financial	0	3	21	0	2.88
Joint Stock Company Kaspi.kz	0	3	2	0	2.40

Capital One Financial currently has a consensus price target of $258.91, suggesting a potential upside of 22.76%. Joint Stock Company Kaspi.kz has a consensus price target of $107.33, suggesting a potential upside of 3.13%. Given Capital One Financial’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Capital One Financial is more favorable than Joint Stock Company Kaspi.kz.

Dividends

Capital One Financial pays an annual dividend of $3.20 per share and has a dividend yield of 1.5%. Joint Stock Company Kaspi.kz pays an annual dividend of $6.97 per share and has a dividend yield of 6.7%. Capital One Financial pays out 19.8% of its earnings in the form of a dividend. Joint Stock Company Kaspi.kz pays out 63.5% 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

Capital One Financial has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Joint Stock Company Kaspi.kz has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Valuation & Earnings

This table compares Capital One Financial and Joint Stock Company Kaspi.kz”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital One Financial	$69.25 billion	1.87	$2.45 billion	$16.16	13.05
Joint Stock Company Kaspi.kz	$7.70 billion	2.57	$2.04 billion	$10.98	9.48

Capital One Financial has higher revenue and earnings than Joint Stock Company Kaspi.kz. Joint Stock Company Kaspi.kz is trading at a lower price-to-earnings ratio than Capital One Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Capital One Financial and Joint Stock Company Kaspi.kz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital One Financial	13.37%	11.28%	1.90%
Joint Stock Company Kaspi.kz	24.00%	40.69%	9.54%

Summary

Capital One Financial beats Joint Stock Company Kaspi.kz on 11 of the 16 factors compared between the two stocks.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.