Head to Head Survey: National Australia Bank (OTCMKTS:NABZY) and National Bank of Canada (OTCMKTS:NTIOF)

National Bank of Canada (OTCMKTS:NTIOF) and National Australia Bank (OTCMKTS:NABZY) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Institutional and Insider Ownership

0.1% of National Bank of Canada shares are owned by institutional investors. 0.3% of National Bank of Canada shares 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.

Dividends

National Bank of Canada pays an annual dividend of $3.83 per share and has a dividend yield of 2.4%. National Australia Bank pays an annual dividend of $0.55 per share and has a dividend yield of 4.0%. National Bank of Canada pays out 46.8% of its earnings in the form of a dividend.

Volatility and Risk

National Bank of Canada has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, National Australia Bank has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Earnings and Valuation

This table compares National Bank of Canada and National Australia Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bank of Canada	$21.96 billion	2.85	$2.87 billion	$8.18	19.87
National Australia Bank	$38.78 billion	2.18	$4.35 billion	N/A	N/A

National Australia Bank has higher revenue and earnings than National Bank of Canada.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Bank of Canada	14.49%	15.99%	0.83%
National Australia Bank	N/A	N/A	N/A

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bank of Canada	0	6	2	0	2.25
National Australia Bank	1	1	1	2	2.80

National Australia Bank has a consensus target price of $42.50, indicating a potential upside of 207.75%. Given National Australia Bank’s stronger consensus rating and higher possible upside, analysts plainly believe National Australia Bank is more favorable than National Bank of Canada.

Summary

National Australia Bank beats National Bank of Canada on 8 of the 15 factors compared between the two stocks.

About National Bank of Canada

National Bank of Canada provides financial services to individuals, businesses, institutional clients, and governments in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, and savings and investment solutions; various insurance products; and commercial banking services, such as credit, and deposit, investment solutions, international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complimentary services. The Wealth Management segment provides full-service brokerage, private banking, direct brokerage, investment solutions, administrative and trade execution, transaction products, and trust and estate services. The Financial Markets segment offers corporate banking, advisory, and capital markets services; and project financing, debt, and equity underwriting; advisory services in the areas of mergers and acquisitions, and financing. The U.S. Specialty Finance and International segment provides specialty finance products; and personal and commercial banking in Cambodia. National Bank of Canada was founded in 1859 and is headquartered in Montreal, Canada.

About National Australia Bank

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. It accepts transaction accounts, savings accounts, debit cards, and term deposits; and specialized accounts, such as foreign currency, business interest, cash maximiser, farm management, community free saver, statutory trust, and project bank accounts, as well as farm management deposits. In addition, the company provides home loans, personal loans, and business loans; vehicle and equipment finance; and trade and invoice finance, as well as business overdrafts and bank guarantees. Further, it offers insurance products consisting of home and content, landlord, travel, car, caravan and trailer, life, and business insurance products; and pension, self-managed super funds, cash management, and financial planning and advisory services. Additionally, the company provides investment products; credit, debit, and business cards; payments and merchant services; online and internet banking services; small business services; international and foreign exchange solutions; and industry specific banking services. The company was founded in 1834 and is based in Melbourne, Australia.