Analyzing PT Bank Mandiri Persero TBK (OTCMKTS:PPERY) and Itau Unibanco (NYSE:ITUB)

PT Bank Mandiri Persero TBK (OTCMKTS:PPERY) and Itau Unibanco (NYSE:ITUB) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Profitability

This table compares PT Bank Mandiri Persero TBK and Itau Unibanco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PT Bank Mandiri Persero TBK	N/A	N/A	N/A
Itau Unibanco	27.27%	21.27%	1.54%

Insider & Institutional Ownership

0.0% of PT Bank Mandiri Persero TBK shares are owned by institutional investors. 0.0% of PT Bank Mandiri Persero TBK shares are owned by insiders. Comparatively, 0.6% of Itau Unibanco shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares PT Bank Mandiri Persero TBK and Itau Unibanco”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PT Bank Mandiri Persero TBK	$10.03 billion	2.30	$3.43 billion	N/A	N/A
Itau Unibanco	$30.04 billion	3.08	$8.03 billion	$0.73	11.43

Itau Unibanco has higher revenue and earnings than PT Bank Mandiri Persero TBK.

Volatility & Risk

PT Bank Mandiri Persero TBK has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, Itau Unibanco has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Dividends

PT Bank Mandiri Persero TBK pays an annual dividend of $0.75 per share and has a dividend yield of 7.6%. Itau Unibanco pays an annual dividend of $0.03 per share and has a dividend yield of 0.4%. Itau Unibanco pays out 4.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for PT Bank Mandiri Persero TBK and Itau Unibanco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT Bank Mandiri Persero TBK	0	0	0	0	0.00
Itau Unibanco	0	1	2	0	2.67

Itau Unibanco has a consensus target price of $10.00, suggesting a potential upside of 19.83%. Given Itau Unibanco’s stronger consensus rating and higher possible upside, analysts plainly believe Itau Unibanco is more favorable than PT Bank Mandiri Persero TBK.

Summary

Itau Unibanco beats PT Bank Mandiri Persero TBK on 11 of the 14 factors compared between the two stocks.

About PT Bank Mandiri Persero TBK

PT Bank Mandiri (Persero) Tbk provides various banking products and services to individuals and businesses in Indonesia, Singapore, Hong Kong, Timor Leste, Shanghai, Malaysia, the United Kingdom, and the Cayman Islands. The company operates through Wholesale and Retail segments. It offers savings and current accounts, time deposits, demand deposits, and foreign currency savings and current accounts; motorcycle loans, mortgage loan, and housing loans, as well as loans for various purposes, such as education, home renovation, marriage, health, and other needs for individuals; and working capital loans, investment loans, people's business loans, syndicated loans, and micro business loans for businesses. The company also provides investment products comprising mutual funds, stocks, and bonds; life, health, and accident insurance products; credit, debit, and corporate cards; digital banking; e-banking services; digital lending; cash management services; trade finance services, value chain, supply chain management, global and domestic trade, export and import, standby letter of credit, and bank guarantee, as well as spot and forex services; custodial services; treasury services, including cash transaction/liquidity, hedging, and investment products; trust services comprising trustee, paying agent, security agent, escrow agent, monitoring agent, and receiving bank services; and money transfer, remittance services, and venture capital financing. It operates branch offices, sub-branch offices, and overseas branch offices; and ATM facilities. The company was founded in 1998 and is headquartered in Jakarta, Indonesia.

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.