Critical Survey: Credit Agricole (OTCMKTS:CRARY) vs. Akbank Turk Anonim Sirketi (OTCMKTS:AKBTY)

Akbank Turk Anonim Sirketi (OTCMKTS:AKBTY) and Credit Agricole (OTCMKTS:CRARY) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Dividends

Akbank Turk Anonim Sirketi pays an annual dividend of $0.08 per share and has a dividend yield of 2.5%. Credit Agricole pays an annual dividend of $0.43 per share and has a dividend yield of 4.4%. Akbank Turk Anonim Sirketi pays out 13.8% of its earnings in the form of a dividend. Credit Agricole pays out 35.8% 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.

Risk & Volatility

Akbank Turk Anonim Sirketi has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Credit Agricole has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Akbank Turk Anonim Sirketi and Credit Agricole, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akbank Turk Anonim Sirketi	0	0	0	0	0.00
Credit Agricole	0	4	1	0	2.20

Valuation and Earnings

This table compares Akbank Turk Anonim Sirketi and Credit Agricole”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akbank Turk Anonim Sirketi	$19.70 billion	0.42	$1.45 billion	$0.58	5.43
Credit Agricole	$31.76 billion	1.86	$8.00 billion	$1.20	8.13

Credit Agricole has higher revenue and earnings than Akbank Turk Anonim Sirketi. Akbank Turk Anonim Sirketi is trading at a lower price-to-earnings ratio than Credit Agricole, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Akbank Turk Anonim Sirketi and Credit Agricole’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akbank Turk Anonim Sirketi	7.87%	21.12%	1.83%
Credit Agricole	24.36%	24.26%	0.88%

Institutional & Insider Ownership

0.6% of Credit Agricole shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Credit Agricole beats Akbank Turk Anonim Sirketi on 12 of the 14 factors compared between the two stocks.

About Akbank Turk Anonim Sirketi

Akbank T.A.S., together with its subsidiaries, provides various banking products and services in Turkey and internationally. It operates through Consumer Banking and Private Banking; Commercial Banking, Corporate Banking, and SME Banking; and Treasury, Other, and Unallovated segments. The company’s consumer banking services comprise deposit accounts, retail loans, commercial installment loans, credit cards, insurance products, and asset management services, as well as bank cards, investment funds trading, automatic payment, foreign currency trading, safe deposit box rental, cheques, money transfer, investment banking, and telephone and internet banking. It also offers services to large, medium, and small size corporate and commercial customers that include Turkish Lira (TL) and foreign currency denominated working capital loans financing for investments, foreign trade financing, derivative instruments for hedging purposes of foreign currency and interest risk, letters of credit, foreign currency trading, corporate finance, and deposit and cash management services, as well as project finance loans; and working capital management, delivering cash management services based on customers’ requests, such as collection and payment services, and liquidity and information management. In addition, the company engages in treasury activities consisting of TL and foreign currency spot and forward transactions, treasury and government bonds, Eurobonds, and private sector bond transactions, as well as derivative trading activities; and marketing and pricing activities related to treasury products. Further, it provides financial leasing services, investment and pension funds management, and portfolio management, as well as offers payment services and issues electronic money. Akbank T.A.S. was incorporated in 1948 and is headquartered in Istanbul, Turkey.

About Credit Agricole

Crédit Agricole S.A. provides retail, corporate, insurance, and investment banking products and services in France and internationally. It operates through French Retail Banking Regional Banks; French Retail Banking – LCL; International Retail Banking; Asset Gathering; Large Customers; and Specialised Financial Services segments. The company offers banking products and services, finance, savings, wealth management, payment, and cash flow management services; consumer finance products; savings/retirement, death and disability/creditor/group, and property and casualty insurance products; investment solutions; and banking and specialized financial services. It also provides investment banking, structured finance, international trade finance, commercial banking, capital market, and syndication services; financing solutions for property and equipment investment and renewal requirements; trade receivable financing and management solutions for corporates; asset servicing solutions for investment products, as well as various asset classes, such as execution, clearing, forex, security lending and borrowing, custody, depositary bank, fund administration, middle-office outsourcing solutions, and fund distribution support and issuer services; and online banking services. The company serves retail customers, corporates, banks and financial institutions, government agencies, and local authorities. Crédit Agricole S.A. was founded in 1894 and is headquartered in Montrouge, France. Crédit Agricole S.A. operates as a subsidiary of SAS Rue La Boetie.