Critical Comparison: Bankinter (OTCMKTS:BKNIY) versus Axos Financial (NYSE:AX)

Bankinter (OTCMKTS:BKNIY) and Axos Financial (NYSE:AX) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Earnings and Valuation

This table compares Bankinter and Axos Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bankinter	$5.27 billion	2.92	$1.23 billion	$1.46	11.73
Axos Financial	$2.19 billion	2.27	$490.37 million	$8.47	10.34

Bankinter has higher revenue and earnings than Axos Financial. Axos Financial is trading at a lower price-to-earnings ratio than Bankinter, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Bankinter and Axos Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bankinter	1	3	2	0	2.17
Axos Financial	0	2	5	1	2.88

Axos Financial has a consensus price target of $115.67, indicating a potential upside of 32.07%. Given Axos Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Axos Financial is more favorable than Bankinter.

Volatility & Risk

Bankinter has a beta of -0.16, indicating that its share price is 116% less volatile than the S&P 500. Comparatively, Axos Financial has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Insider & Institutional Ownership

83.8% of Axos Financial shares are owned by institutional investors. 4.3% of Axos Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Bankinter and Axos Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bankinter	24.27%	18.20%	0.90%
Axos Financial	22.39%	16.96%	1.77%

Summary

Axos Financial beats Bankinter on 9 of the 15 factors compared between the two stocks.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.

About Axos Financial

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through two segments, Banking Business and Securities Business. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides residential single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text message banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.