BNP Paribas (BNPQY) vs. Its Rivals Critical Contrast

BNP Paribas (OTCMKTS:BNPQY) is one of 920 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare BNP Paribas to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BNP Paribas	25.42%	10.39%	0.48%
BNP Paribas Competitors	15.63%	9.45%	0.93%

Analyst Ratings

This is a breakdown of recent ratings for BNP Paribas and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BNP Paribas	1	2	3	1	2.57
BNP Paribas Competitors	7458	30159	27707	1451	2.35

As a group, “Banks” companies have a potential upside of 17.32%. Given BNP Paribas’ peers higher possible upside, analysts plainly believe BNP Paribas has less favorable growth aspects than its peers.

Dividends

BNP Paribas pays an annual dividend of $2.71 per share and has a dividend yield of 5.7%. BNP Paribas pays out 39.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.5% and pay out 28.9% of their earnings in the form of a dividend. BNP Paribas lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

BNP Paribas has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, BNP Paribas’ peers have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.

Institutional & Insider Ownership

1.2% of BNP Paribas shares are owned by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are owned by institutional investors. 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares BNP Paribas and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BNP Paribas	$57.94 billion	$13.83 billion	6.93
BNP Paribas Competitors	$9.93 billion	$2.41 billion	18.77

BNP Paribas has higher revenue and earnings than its peers. BNP Paribas 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

BNP Paribas beats its peers on 8 of the 15 factors compared.

About BNP Paribas

BNP Paribas SA provides various banking and financial products and services in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through three divisions: Corporate & Institutional Banking; Commercial, Personal Banking & Services; and Investment & Protection Services. The Corporate & Institutional Banking division offers capital market, securities, investment banking, financing, risk management, cash management, and financial advisory services for corporate clients and institutional investors. The Commercial, Personal Banking & Services division provides financing and equipment leasing services, mobility, and digital banking services, as well as current accounts, savings products, bancassurance, insurance products and services, and consumer loans. The Investment & Protection Services division provides protection, savings, investment, and real estate services to support individuals, professionals, corporate clients, and institutions. The company was formerly known as Banque Nationale de Paris and changed its name to BNP Paribas SA in May 2000. BNP Paribas SA was founded in 1822 and is headquartered in Paris, France.