Credicorp (NYSE: BAP) is one of 330 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare Credicorp to related companies based on the strength of its dividends, institutional ownership, analyst recommendations, earnings, profitability, valuation and risk.

Analyst Ratings

This is a summary of current recommendations for Credicorp and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Credicorp 0 2 2 0 2.50
Credicorp Competitors 2090 8124 8266 322 2.36

Credicorp presently has a consensus target price of $222.00, suggesting a potential upside of 7.47%. As a group, “Banks” companies have a potential downside of 3.21%. Given Credicorp’s stronger consensus rating and higher probable upside, research analysts clearly believe Credicorp is more favorable than its peers.

Insider and Institutional Ownership

66.0% of Credicorp shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Banks” companies are owned by institutional investors. 15.9% of Credicorp shares are owned by company insiders. Comparatively, 10.6% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Credicorp and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Credicorp 24.24% 17.78% 2.26%
Credicorp Competitors 18.93% 8.74% 0.93%

Volatility & Risk

Credicorp has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Credicorp’s peers have a beta of 0.83, indicating that their average share price is 17% less volatile than the S&P 500.

Dividends

Credicorp pays an annual dividend of $3.74 per share and has a dividend yield of 1.8%. Credicorp pays out 26.4% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 34.7% of their earnings in the form of a dividend. Credicorp has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Credicorp and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Credicorp $4.39 billion $1.04 billion 14.56
Credicorp Competitors $5.42 billion $836.14 million 356.98

Credicorp’s peers have higher revenue, but lower earnings than Credicorp. Credicorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Credicorp beats its peers on 11 of the 15 factors compared.

Credicorp Company Profile

Credicorp Ltd. is a financial services holding company in Peru. The Company has four operating segments based on its products and services, which include banking, insurance, pension funds and investment banking. Its operating subsidiaries include Banco de Credito del Peru; Atlantic Security Bank, which it holds through Atlantic Security Holding Corporation; El Pacifico-Peruano Suiza Compania de Seguros y Reaseguros (Grupo Pacifico); Prima AFP S.A., and Credicorp Capital Ltd. (Credicorp Capital). Its banking business is focused on commercial and consumer loans, credit facilities, deposits, current accounts and credit cards. The Company conducts its insurance business through Grupo Pacifico. It conducts all of its pension fund activities through its private pension fund administrator Prima AFP S.A. The investment banking business units are grouped under Credicorp Capital, which carries its business under asset management, sales and trading, and corporate finance business lines.

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