Comparing BNP PARIBAS/S (BNPQY) & Royal Bank of Canada (RY)
BNP PARIBAS/S (NYSE: RY) and Royal Bank of Canada (NYSE:RY) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
This table compares BNP PARIBAS/S and Royal Bank of Canada’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Royal Bank of Canada||21.48%||18.11%||0.99%|
This table compares BNP PARIBAS/S and Royal Bank of Canada’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BNP PARIBAS/S||$55.61 billion||1.36||$8.77 billion||$3.90||7.75|
|Royal Bank of Canada||$40.37 billion||2.84||$8.74 billion||$6.06||13.12|
BNP PARIBAS/S has higher revenue and earnings than Royal Bank of Canada. BNP PARIBAS/S is trading at a lower price-to-earnings ratio than Royal Bank of Canada, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for BNP PARIBAS/S and Royal Bank of Canada, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Royal Bank of Canada||0||4||6||0||2.60|
Royal Bank of Canada has a consensus price target of $100.50, suggesting a potential upside of 26.42%. Given Royal Bank of Canada’s stronger consensus rating and higher possible upside, analysts clearly believe Royal Bank of Canada is more favorable than BNP PARIBAS/S.
Institutional and Insider Ownership
0.9% of BNP PARIBAS/S shares are owned by institutional investors. Comparatively, 39.8% of Royal Bank of Canada shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
BNP PARIBAS/S has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.
BNP PARIBAS/S pays an annual dividend of $1.49 per share and has a dividend yield of 4.9%. Royal Bank of Canada pays an annual dividend of $2.86 per share and has a dividend yield of 3.6%. BNP PARIBAS/S pays out 38.2% of its earnings in the form of a dividend. Royal Bank of Canada pays out 47.2% 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. BNP PARIBAS/S is clearly the better dividend stock, given its higher yield and lower payout ratio.
Royal Bank of Canada beats BNP PARIBAS/S on 11 of the 15 factors compared between the two stocks.
About BNP PARIBAS/S
BNP Paribas SA provides a range of banking and financial services in France and internationally. The company operates through two divisions, Retail Banking and Services; and Corporate and Institutional Banking. It offers long-term corporate vehicle leasing, and rental and other financing solutions; and digital banking and investment services, cash management, and factoring services to corporate clients, as well as wealth management services. The company also provides credit solutions for individuals under the Cetelem, Cofinoga, and Findomestic brand names; savings and protection solutions, including insuring individuals and their personal projects and assets; and asset management, private banking, and real estate services. In addition, it offers global market services, including investment, hedging, financing, and research across asset classes; security services comprising clearing, custody, and asset and fund services, as well as corporate trust, and market and financing services; and corporate trade and treasury, debt financing, specialized financing, strategic advisory, mergers and acquisition, and equity capital market services for institutional and corporate clients. The company was formerly known as Banque Nationale de Paris and changed its name to BNP Paribas SA in May 2000. BNP Paribas SA was founded in 1848 and is headquartered in Paris, France.
About Royal Bank of Canada
Royal Bank of Canada, together with its subsidiaries, operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers personal and business banking services, as well as auto financing and retail investment products. This segment also provides a suite of financial products and services to individual, business clients, and public institutions through its branch, automated teller machines, online, mobile, and telephone banking networks, as well as through sales professionals. Its Wealth Management segment offers a suite of investment, trust, banking, credit, and other wealth management solutions to high net worth and ultra-high net worth clients; and asset management products and services directly to institutional and individual clients through its distribution channels and third-party distributors. The company's Insurance segment provides life, health, home, auto, travel, wealth, group, and reinsurance products and solutions through retail insurance branches, field sales representatives, advice centers, and online network, as well as through independent insurance advisors and affinity relationships. Its Investor and Treasury Services segment offers asset services, custody, payments, and treasury services for financial and other institutional investors. This segment also provides cash management, correspondent banking, and trade finance for financial institutions; and short-term funding and liquidity management services. The company's Capital Markets segment offers corporate and investment banking, as well as equity and debt origination, distribution, and structuring and trading for public and private companies, institutional investors, governments, and central banks. Royal Bank of Canada was founded in 1864 and is headquartered in Toronto, Canada.
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