Head to Head Contrast: Bankinter (OTCMKTS:BKNIY) and Royal Bank Of Canada (NYSE:RY)

Royal Bank Of Canada (NYSE:RY) and Bankinter (OTCMKTS:BKNIY) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Royal Bank Of Canada and Bankinter”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Bank Of Canada	$98.11 billion	2.70	$14.54 billion	$10.45	18.15
Bankinter	$5.27 billion	2.82	$1.23 billion	$1.40	11.83

Royal Bank Of Canada has higher revenue and earnings than Bankinter. Bankinter is trading at a lower price-to-earnings ratio than Royal Bank Of Canada, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

45.3% of Royal Bank Of Canada shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Royal Bank Of Canada and Bankinter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Bank Of Canada	15.28%	17.12%	0.94%
Bankinter	23.50%	17.69%	0.86%

Dividends

Royal Bank Of Canada pays an annual dividend of $4.72 per share and has a dividend yield of 2.5%. Bankinter pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. Royal Bank Of Canada pays out 45.2% of its earnings in the form of a dividend. Bankinter pays out 22.9% 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. Royal Bank Of Canada has raised its dividend for 15 consecutive years. Royal Bank Of Canada is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Royal Bank Of Canada has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Bankinter has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Royal Bank Of Canada and Bankinter, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Bank Of Canada	0	4	10	0	2.71
Bankinter	1	5	1	0	2.00

Royal Bank Of Canada currently has a consensus price target of $162.00, indicating a potential downside of 14.59%. Given Royal Bank Of Canada’s stronger consensus rating and higher probable upside, equities analysts plainly believe Royal Bank Of Canada is more favorable than Bankinter.

Summary

Royal Bank Of Canada beats Bankinter on 12 of the 16 factors compared between the two stocks.

About Royal Bank Of Canada

Royal Bank of Canada operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses. This segment offers financial products and services through branches, automated teller machines, and mobile sales network. Its Wealth Management segment provides a suite of wealth, investment, trust, banking, credit, and other advice-based solutions and strategies to high net worth and ultra-high net worth individuals, and institutional clients; asset management products to institutional and individual clients; and asset and investor services to financial institutions, asset managers, and asset owners. The company's Insurance segment offers life, health, home, auto, travel, wealth, annuities, property and casualty, and reinsurance advice and solutions; and business insurance services to individual, business, and group clients through its advice centers, RBC insurance stores, and mobile advisors; digital platforms; and independent brokers and partners. The company's Capital Markets segment offers advisory and origination, sales and trading, lending and financing, and transaction banking services to corporations, institutional clients, asset managers, private equity firms, and governments. The company was founded in 1864 and is headquartered in Toronto, Canada.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.