Comparing Credicorp (NYSE:BAP) and First Financial Bankshares (NASDAQ:FFIN)

First Financial Bankshares (NASDAQ:FFIN) and Credicorp (NYSE:BAP) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Valuation & Earnings

This table compares First Financial Bankshares and Credicorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bankshares	$833.20 million	5.24	$253.58 million	$1.87	16.29
Credicorp	$25.62 billion	1.44	$1.94 billion	$26.99	14.49

Credicorp has higher revenue and earnings than First Financial Bankshares. Credicorp is trading at a lower price-to-earnings ratio than First Financial Bankshares, indicating that it is currently the more affordable of the two stocks.

Dividends

First Financial Bankshares pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Credicorp pays an annual dividend of $14.47 per share and has a dividend yield of 3.7%. First Financial Bankshares pays out 47.1% of its earnings in the form of a dividend. Credicorp pays out 53.6% 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. First Financial Bankshares has raised its dividend for 15 consecutive years and Credicorp has raised its dividend for 3 consecutive years.

Profitability

This table compares First Financial Bankshares and Credicorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Bankshares	33.16%	14.91%	1.89%
Credicorp	25.04%	20.52%	2.87%

Volatility and Risk

First Financial Bankshares has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Credicorp has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

69.8% of First Financial Bankshares shares are owned by institutional investors. Comparatively, 89.8% of Credicorp shares are owned by institutional investors. 3.8% of First Financial Bankshares shares are owned by company insiders. Comparatively, 15.9% of Credicorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for First Financial Bankshares and Credicorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bankshares	0	6	0	1	2.29
Credicorp	0	2	5	0	2.71

First Financial Bankshares presently has a consensus price target of $35.40, suggesting a potential upside of 16.18%. Credicorp has a consensus price target of $431.80, suggesting a potential upside of 10.42%. Given First Financial Bankshares’ higher possible upside, research analysts clearly believe First Financial Bankshares is more favorable than Credicorp.

Summary

Credicorp beats First Financial Bankshares on 11 of the 18 factors compared between the two stocks.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company offers checking, savings and time deposits; automated teller machines, drive-in, and night deposit services; safe deposit facilities, remote deposit capture, internet banking, mobile banking, payroll cards, funds transfer, and performing other customary commercial banking services; securities brokerage services; and trust and wealth management services, including wealth management, estates administration, oil and gas management, testamentary trusts, revocable and irrevocable trusts, and agency accounts. It also provides commercial and industrial, municipal, agricultural, construction and development, farm, residential, and consumer auto and non-auto, as well as non-owner occupied and owner occupied commercial real estate loans. In addition, the company offers advisory and specialized services related to asset management, investing, purchasing, advertising, public relations, and technology services. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.

About Credicorp

Credicorp Ltd. provides various financial, insurance, and health services and products primarily in Peru and internationally. It operates through Universal Banking, Insurance and Pensions, Microfinance, and Investment Banking and Equity Management segments. The Universal Banking segment grants various credits and financial instruments to individuals and legal entities; and various deposits and current accounts. The Insurance and Pensions segment issues insurance policies to cover losses in commercial property, transport, marine vessels, automobiles, life, health, and pensions; and management services for private pension funds. The Microfinance segment provides management of loans, deposits, and current accounts for small and microenterprises. The Investment Banking and Equity Management segment is involved in provision of brokerage and investment management services for corporations, institutional investors, governments, and foundations; structuring and placement of issues in the primary market; execution and negotiation of transactions in the secondary market; and structuring of securitization processes for corporate customers and manages mutual funds. The company was founded in 1889 and is headquartered in Lima, Peru.