Comparing Credicorp (NYSE:BAP) & Fifth Third Bancorp (NASDAQ:FITB)

Fifth Third Bancorp (NASDAQ:FITB) and Credicorp (NYSE:BAP) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares Fifth Third Bancorp and Credicorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fifth Third Bancorp	$10.47 billion	4.77	$2.52 billion	$2.93	18.78
Credicorp	$8.01 billion	4.51	$1.94 billion	$26.99	14.18

Fifth Third Bancorp has higher revenue and earnings than Credicorp. Credicorp is trading at a lower price-to-earnings ratio than Fifth Third Bancorp, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Fifth Third Bancorp has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Credicorp has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Institutional & Insider Ownership

83.8% of Fifth Third Bancorp shares are owned by institutional investors. Comparatively, 89.8% of Credicorp shares are owned by institutional investors. 0.5% of Fifth Third Bancorp shares are owned by insiders. Comparatively, 15.9% of Credicorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Fifth Third Bancorp and Credicorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fifth Third Bancorp	15.89%	12.39%	1.20%
Credicorp	25.04%	20.52%	2.87%

Analyst Recommendations

This is a breakdown of current ratings for Fifth Third Bancorp and Credicorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth Third Bancorp	0	5	17	1	2.83
Credicorp	0	3	4	0	2.57

Fifth Third Bancorp currently has a consensus target price of $60.54, indicating a potential upside of 10.02%. Credicorp has a consensus target price of $418.40, indicating a potential upside of 9.32%. Given Fifth Third Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe Fifth Third Bancorp is more favorable than Credicorp.

Dividends

Fifth Third Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. Credicorp pays an annual dividend of $14.48 per share and has a dividend yield of 3.8%. Fifth Third Bancorp pays out 54.6% of its earnings in the form of a dividend. Credicorp pays out 53.6% 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. Fifth Third Bancorp has raised its dividend for 14 consecutive years and Credicorp has raised its dividend for 3 consecutive years. Credicorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Fifth Third Bancorp beats Credicorp on 10 of the 18 factors compared between the two stocks.

About Fifth Third Bancorp

Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, National Association that engages in the provision of a range of financial products and services in the United States. It operates through three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management. The Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. The Consumer and Small Banking segment provides a range of deposit and loan products to individuals and small businesses; home equity loans and lines of credit; credit cards; and cash management services. This segment also engages in the residential mortgage that include origination, retention and servicing of residential mortgage loans, sales and securitizations of loans, and hedging activities; indirect lending, including extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers, and marine dealers; and home improvement and solar energy installation loans through contractors and installers. The Wealth & Asset Management segment provides various wealth management services for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides wealth planning, investment management, banking, insurance, and trust and estate services; and advisory services for institutional clients comprising middle market businesses, non-profits, states, and municipalities. The company was founded in 1858 and is headquartered in Cincinnati, Ohio.

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.