ERSTE GRP BK A/S (OTCMKTS:EBKDY) and Credicorp (NYSE:BAP) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Earnings & Valuation

This table compares ERSTE GRP BK A/S and Credicorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ERSTE GRP BK A/S $9.04 billion 1.78 $1.49 billion $1.66 11.31
Credicorp $4.74 billion 4.17 $1.21 billion $14.88 16.68

ERSTE GRP BK A/S has higher revenue and earnings than Credicorp. ERSTE GRP BK A/S is trading at a lower price-to-earnings ratio than Credicorp, indicating that it is currently the more affordable of the two stocks.

Dividends

ERSTE GRP BK A/S pays an annual dividend of $0.68 per share and has a dividend yield of 3.6%. Credicorp pays an annual dividend of $4.39 per share and has a dividend yield of 1.8%. ERSTE GRP BK A/S pays out 41.0% of its earnings in the form of a dividend. Credicorp pays out 29.5% 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. Credicorp has raised its dividend for 4 consecutive years.

Profitability

This table compares ERSTE GRP BK A/S and Credicorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ERSTE GRP BK A/S 23.58% 9.49% 0.75%
Credicorp 25.05% 17.24% 2.32%

Volatility & Risk

ERSTE GRP BK A/S has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Credicorp has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for ERSTE GRP BK A/S and Credicorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ERSTE GRP BK A/S 0 0 0 0 N/A
Credicorp 1 1 4 0 2.50

Credicorp has a consensus target price of $257.33, suggesting a potential upside of 3.68%. Given Credicorp’s higher probable upside, analysts clearly believe Credicorp is more favorable than ERSTE GRP BK A/S.

Insider & Institutional Ownership

0.3% of ERSTE GRP BK A/S shares are held by institutional investors. Comparatively, 66.7% of Credicorp shares are held by institutional investors. 15.9% of Credicorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Credicorp beats ERSTE GRP BK A/S on 12 of the 16 factors compared between the two stocks.

About ERSTE GRP BK A/S

Erste Group Bank AG provides a range of banking and other financial services to the retail and corporate customers in Austria, Central and Eastern Europe, and internationally. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management and Local Corporate Center, Savings Banks, Group Corporate Center, and Intragroup Elimination segments. It offers savings and current accounts, mortgage and consumer loans, working capital finance, accounts receivable purchasing, structured trade finance, and supply chain finance services; loan syndication services; letters of credit, guarantees, investment finance, acquisition and leveraged finance, commercial real estate finance, buyer's credit, and revolving export credit lines; liquidity management; and hedging and documentary collection services. The company also provides private banking, asset management, investment banking, securities and derivatives trading, portfolio management, project finance, foreign trade financing, corporate finance, capital market and money market, foreign exchange trading, and leasing and factoring services; phone, online, and mobile banking services; and leasing, insurance, investment, and building society products, as well as credit cards. In addition, it offers real estate development and lending; advisory services related to acquisition, divestment, and merger, as well as risk management; analysis services for stock, bond, and commodity markets; and custody and brokerage services. The company operates through 2,565 branches in seven countries. Erste Group Bank AG was founded in 1819 and is headquartered in Vienna, Austria.

About Credicorp

Credicorp Ltd., through its banking and non-banking subsidiaries, provides a range of financial, insurance, and health services and products primarily in Peru and internationally. It operates through four segments: Banking, Insurance, Pension Funds, and Investment Banking. The company offers deposits, current accounts, loans, and credit facilities; and provides private pension fund management services to affiliated pensioners. It also issues insurance policies to cover losses in commercial property, transportation, marine vessels, automobile, life, health, and pension funds. In addition, the company offers investment brokerage and management services to corporations, institutional investors, governments, and foundations; and engages in structuring and placement of issues in the primary market, as well as the execution and negotiation of operations in the secondary market. Further, it structures securitization processes for companies; and manages mutual funds. Credicorp Ltd. was incorporated in 1995 and is based in Hamilton, Bermuda.

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