Analyzing Itau Unibanco (NYSE:ITUB) & Standard Chartered (OTCMKTS:SCBFF)

Itau Unibanco (NYSE:ITUB) and Standard Chartered (OTCMKTS:SCBFF) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Valuation & Earnings

This table compares Itau Unibanco and Standard Chartered”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Itau Unibanco	$62.19 billion	1.26	$7.62 billion	$0.72	10.15
Standard Chartered	$41.04 billion	1.30	$4.05 billion	$1.88	12.47

Itau Unibanco has higher revenue and earnings than Standard Chartered. Itau Unibanco is trading at a lower price-to-earnings ratio than Standard Chartered, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Itau Unibanco and Standard Chartered’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Itau Unibanco	16.30%	19.60%	1.49%
Standard Chartered	12.84%	10.88%	0.65%

Dividends

Itau Unibanco pays an annual dividend of $3.79 per share and has a dividend yield of 51.9%. Standard Chartered pays an annual dividend of $0.25 per share and has a dividend yield of 1.1%. Itau Unibanco pays out 526.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Standard Chartered pays out 13.3% of its earnings in the form of a dividend.

Risk & Volatility

Itau Unibanco has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Standard Chartered has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Itau Unibanco and Standard Chartered, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Itau Unibanco	0	2	3	1	2.83
Standard Chartered	0	1	2	0	2.67

Itau Unibanco currently has a consensus price target of $7.09, suggesting a potential downside of 2.93%. Given Itau Unibanco’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Itau Unibanco is more favorable than Standard Chartered.

Summary

Itau Unibanco beats Standard Chartered on 11 of the 15 factors compared between the two stocks.

About Itau Unibanco

Itaú Unibanco Holding S.A. offers a range of financial products and services to individuals and corporate customers in Brazil and internationally. The company operates through three segments: Retail Banking, Wholesale Banking, and Activities with the Market + Corporation. It offers current account; loans; credit and debit cards; investment and commercial banking services; real estate lending services; financing and investment services; economic, financial and brokerage advisory; and leasing and foreign exchange services. The company also provides property and casualty insurance products covering loss, damage, or liabilities for assets or persons, as well as life insurance products covering death and personal accident. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and small companies, as well as middle-market companies and high net worth clients. The company was formerly known as Itaú Unibanco Banco Múltiplo S.A. and changed its name to Itaú Unibanco Holding S.A. in April 2009. The company was incorporated in 1924 and is headquartered in São Paulo, Brazil. Itaú Unibanco Holding S.A. operates as a subsidiary of IUPAR – Itaú Unibanco Participações S.A.

About Standard Chartered

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.