Reviewing Credicorp (BAP) & DNB ASA/S (DNHBY)
Credicorp (NYSE:BAP) and DNB ASA/S (OTCMKTS:DNHBY) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Volatility and Risk
Credicorp has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, DNB ASA/S has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.
This table compares Credicorp and DNB ASA/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
66.4% of Credicorp shares are owned by institutional investors. Comparatively, 0.1% of DNB ASA/S shares are owned by institutional investors. 15.9% of Credicorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Credicorp and DNB ASA/S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Credicorp||$4.83 billion||3.65||$1.25 billion||$15.74||14.02|
|DNB ASA/S||$8.42 billion||3.28||$2.64 billion||$1.55||11.15|
DNB ASA/S has higher revenue and earnings than Credicorp. DNB ASA/S is trading at a lower price-to-earnings ratio than Credicorp, indicating that it is currently the more affordable of the two stocks.
Credicorp pays an annual dividend of $4.39 per share and has a dividend yield of 2.0%. DNB ASA/S pays an annual dividend of $0.72 per share and has a dividend yield of 4.2%. Credicorp pays out 27.9% of its earnings in the form of a dividend. DNB ASA/S pays out 46.5% 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 3 consecutive years.
This is a breakdown of current ratings for Credicorp and DNB ASA/S, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Credicorp currently has a consensus price target of $266.00, suggesting a potential upside of 20.54%. Given Credicorp’s higher probable upside, equities analysts plainly believe Credicorp is more favorable than DNB ASA/S.
Credicorp beats DNB ASA/S on 11 of the 16 factors compared between the two stocks.
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.
About DNB ASA/S
DNB ASA provides various banking products and services for retail and corporate customers in Norway and internationally. It operates through Personal customers, Small and Medium-Sized Enterprises, Large Corporates and International Customers, Trading, and Traditional Pension Products segments. The company offers savings and investment products, including saving accounts, home savings products, equities, retirement savings, fixed rate deposits, exchange traded products, bonds and commercial papers, and asset management services; and loans, such as home mortgages, car and consumer loans, trade finance, and export financing, as well as overdraft facilities, bank guarantees, and leasing and factoring services. It also provides various cards; a range of insurance products comprising car, boat, motor vehicle, household contents, home, holiday home, travel, and life insurance products, as well as pet insurance for cats and dogs; and pension plans. In addition, the company offers investment banking advisory and financing services, such as mergers and acquisitions, and equity and debt capital markets for corporations and private equity firms; and foreign exchange and treasury, cash management, research, commodities, equities, corporate finance, interest rates, securities, real estate broking, and Internet and mobile banking services. It offers its products and services to various sectors, including energy; financial institutions; healthcare; manufacturing; packaging and forest products; seafood; shipping, offshore, and logistics; and telecom, media, and technology. The company distributes its products and services through its distribution network comprising branches, telephone banking, digital banking, and real estate broking, as well as external channels, such as post offices, and in-store postal and banking outlets. DNB ASA was founded in 1822 and is headquartered in Oslo, Norway.
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