Credicorp (NYSE:BAP – Get Rating) and Swedbank AB (publ) (OTCMKTS:SWDBY – Get Rating) are both finance companies, but which is the best investment? We’ll compare the two companies based on their dividend strength, earnings, analyst recommendations, institutional ownership, profitability, valuation, and risk.
Benefits and evaluation
This table compares the gross revenue, earnings per share and valuation of Credicorp and Swedbank AB (publ).
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Creditcorp||$4.32 billion||N / A||$923.39 million||$8.75||4:55 p.m.|
|Swedbank AB (publisher)||$5.95 billion||3.14||$2.43 billion||$2.18||7.56|
Swedbank AB (publ) has higher revenue and profit than Credicorp. Swedbank AB (publ) trades at a lower price-to-earnings ratio than Credicorp, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
66.7% of Credicorp shares are held by institutional investors. 15.9% of Credicorp shares are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.
Volatility and risk
Credicorp has a beta of 0.77, meaning its stock price is 23% less volatile than the S&P 500. In comparison, Swedbank AB (publ) has a beta of 1.05, meaning its stock price is 5% more volatile than the S&P 500.
This table compares the net margins, return on equity and return on assets of Credicorp and Swedbank AB (publ).
|Net margins||Return on equity||return on assets|
|Swedbank AB (publisher)||41.52%||12.96%||0.72%|
This is a breakdown of current ratings and target prices for Credicorp and Swedbank AB (publ), as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Swedbank AB (publisher)||0||6||8||0||2.57|
Credicorp currently has a consensus target price of $148.00, indicating a potential upside of 2.20%. Swedbank AB (publ) has a consensus target price of $185.67, indicating a potential upside of 1,027.30%. Given the stronger consensus rating of Swedbank AB (publ) and the higher likely upside, analysts clearly believe that Swedbank AB (publ) is more favorable than Credicorp.
Credicorp pays an annual dividend of $1.21 per share and has a dividend yield of 0.8%. Swedbank AB (publ) pays an annual dividend of $0.98 per share and has a dividend yield of 6.0%. Credicorp distributes 13.8% of its profits as a dividend. Swedbank AB (publ) distributes 45.0% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years.
Swedbank AB (publ) beats Credicorp on 9 of the 15 factors compared between the two stocks.
About Credicorp (Get an evaluation)
Credicorp Ltd., a financial services holding company, provides various financial, insurance and health services and products, primarily in Peru and abroad. The Company’s Universal Banking segment offers deposits and current accounts, as well as various credits and financial instruments to natural and legal persons. Its Insurance and Pensions segment issues insurance policies to cover losses in commercial property, transportation, ships, automobiles, life, health and pensions, as well as private pension fund management services. . The Company’s Microfinance segment manages loans, credits, deposits and current accounts for small and micro enterprises. Its Investment Banking and Wealth Management segment offers its services to corporations, institutional investors, governments and foundations; deals with the structuring and placement of issues in the primary market, as well as the execution and negotiation of trades in the secondary market; and structures securitization processes for corporate clients and manages mutual funds. The company was founded in 1889 and is headquartered in Lima, Peru.
About Swedbank AB (publ) (Get an evaluation)
Swedbank AB (publ) provides various retail and corporate banking products and services. The Company operates through the Swedish Bank, Baltic Bank and Large Corporates and Institutions segments. It offers savings, salary and current accounts; private residential and commercial loans; leasing, factoring and financing services; consumer, mortgage, acquisition and project, export and marine finance; mutual fund; and asset management, and life insurance and pension services. The Company also offers investment and trading services, including currency, fixed income and equity derivatives and related derivative services, as well as structured products; advisory and investment banking products and services, such as corporate finance, debt capital market, structured finance, loans and syndication services; and transaction banking, such as cash management, trade finance, securities, trade payments, accounts, and clearing and settlement services. Additionally, it provides domestic, international, mobile, document and other payment products; debit and credit cards; real estate brokerage and management; legal services; and safety deposit boxes, as well as telephone, internet and mobile banking. The company has 153 branches in Sweden, 17 branches in Estonia, 21 in Latvia and 42 in Lithuania. It also operates in Norway, Finland, Denmark, China, the United States and South Africa. The company was previously known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden.
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