NU (NYSE:NU) & China CITIC Bank (OTCMKTS:CHCJY) Head-To-Head Comparison

NU (NYSE:NU) and China CITIC Bank (OTCMKTS:CHCJY) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Profitability

This table compares NU and China CITIC Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NU	18.20%	30.91%	4.80%
China CITIC Bank	20.39%	8.44%	0.71%

Earnings & Valuation

This table compares NU and China CITIC Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NU	$15.77 billion	4.11	$2.87 billion	$0.65	20.53
China CITIC Bank	$49.07 billion	0.86	$9.82 billion	$3.38	5.09

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

Analyst Ratings

This is a summary of current ratings and recommmendations for NU and China CITIC Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NU	1	4	10	0	2.60
China CITIC Bank	0	1	0	0	2.00

NU presently has a consensus price target of $17.24, indicating a potential upside of 29.20%. Given NU’s stronger consensus rating and higher possible upside, equities research analysts clearly believe NU is more favorable than China CITIC Bank.

Risk and Volatility

NU has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, China CITIC Bank has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Insider and Institutional Ownership

84.0% of NU shares are owned by institutional investors. 1.2% of NU shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

NU beats China CITIC Bank on 10 of the 14 factors compared between the two stocks.

About NU

Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.

About China CITIC Bank

China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.