National Australia Bank (OTCMKTS:NABZY) and WesBanco (NASDAQ:WSBC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Volatility & Risk

National Australia Bank has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, WesBanco has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Valuation and Earnings

This table compares National Australia Bank and WesBanco’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Australia Bank $24.56 billion 1.99 $4.03 billion $0.92 9.92
WesBanco $421.26 million 4.59 $94.48 million $2.45 16.91

National Australia Bank has higher revenue and earnings than WesBanco. National Australia Bank is trading at a lower price-to-earnings ratio than WesBanco, indicating that it is currently the more affordable of the two stocks.

Dividends

National Australia Bank pays an annual dividend of $0.71 per share and has a dividend yield of 7.8%. WesBanco pays an annual dividend of $1.16 per share and has a dividend yield of 2.8%. National Australia Bank pays out 77.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. WesBanco pays out 47.3% of its earnings in the form of a dividend. WesBanco has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of recent ratings for National Australia Bank and WesBanco, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Australia Bank 0 0 1 0 3.00
WesBanco 0 5 1 0 2.17

WesBanco has a consensus price target of $45.75, suggesting a potential upside of 10.40%. Given WesBanco’s higher probable upside, analysts plainly believe WesBanco is more favorable than National Australia Bank.

Insider and Institutional Ownership

0.1% of National Australia Bank shares are owned by institutional investors. Comparatively, 59.9% of WesBanco shares are owned by institutional investors. 4.1% of WesBanco shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares National Australia Bank and WesBanco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Australia Bank N/A N/A N/A
WesBanco 24.38% 8.85% 1.24%

Summary

WesBanco beats National Australia Bank on 11 of the 16 factors compared between the two stocks.

National Australia Bank Company Profile

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, Asia, the United States, and the United Kingdom. It operates through Consumer Banking and Wealth, Business and Private Banking, Corporate and Institutional Banking, and NZ Banking segments. The company accepts transaction accounts, savings accounts, term deposits, and deposit accounts; and specialized accounts, such as foreign currency, business interest, statutory trust, community free saver, and farm management accounts. It also provides home loans; personal loans; agribusiness loans; business market and option loans; equipment and vehicle loans; short term loans for micro enterprises; and debtor, invoice, and trade finance, as well as business overdrafts. In addition, the company offers insurance products consisting of car, home and content, landlord, travel, credit card, personal loan, home loan, caravan and trailer, and life insurance; and superannuation, self-managed super funds, and financial planning and advisory services; and travel services, as well as investment products. Further, it provides credit, debit, and business cards; payments and merchant services; online banking services; small business services; and international and foreign exchange solutions. As of September 30, 2017, the company operated through a network of 796 branches and business banking centers, and 2,934 ATMs. National Australia Bank Limited was founded in 1834 and is based in Docklands, Australia.

WesBanco Company Profile

WesBanco, Inc. operates as the holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, and mortgage banking and insurance services in the United States. It operates in two segments, Community Banking, and Trust and Investment Services. The company offers commercial demand, individual demand, and time deposit accounts; money market accounts; interest bearing and non-interest bearing demand deposits, as well as savings deposits; and certificates of deposit. It also provides commercial real estate loans; commercial and industrial loans; residential real estate loans, including loans to purchase, construct, or refinance borrower's home; home equity lines of credit; installment loans to finance the purchases of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and commercial, mortgage, and individual installment loans. In addition, the company offers trust and investment services, as well as various investment products comprising mutual funds and annuities; and securities brokerage services. Further, WesBanco, Inc., through its non-banking subsidiaries, acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. As of December 31, 2017, the company operated through 172 branches and 160 ATMs in West Virginia, Ohio, western Pennsylvania, Kentucky, and southern Indiana, as well as 4 loan production offices in West Virginia, Ohio, and western Pennsylvania. WesBanco, Inc. was founded in 1968 and is headquartered in Wheeling, West Virginia.

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