ABN AMRO Bank (AAVMY) & Its Peers Critical Contrast

ABN AMRO Bank (OTCMKTS:AAVMY) is one of 930 public companies in the “Banks” industry, but how does it compare to its peers? We will compare ABN AMRO Bank to related companies based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for ABN AMRO Bank and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABN AMRO Bank	0	1	6	1	3.00
ABN AMRO Bank Competitors	7398	29756	26986	1350	2.34

As a group, “Banks” companies have a potential upside of 4.09%. Given ABN AMRO Bank’s peers higher probable upside, analysts plainly believe ABN AMRO Bank has less favorable growth aspects than its peers.

Profitability

This table compares ABN AMRO Bank and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ABN AMRO Bank	14.22%	9.16%	0.57%
ABN AMRO Bank Competitors	14.80%	9.42%	0.91%

Dividends

ABN AMRO Bank pays an annual dividend of $1.84 per share and has a dividend yield of 3.8%. ABN AMRO Bank pays out 56.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.6% and pay out 32.4% of their earnings in the form of a dividend. ABN AMRO Bank lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares ABN AMRO Bank and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ABN AMRO Bank	$19.04 billion	$2.30 billion	14.82
ABN AMRO Bank Competitors	$9.75 billion	$2.38 billion	25.87

ABN AMRO Bank has higher revenue, but lower earnings than its peers. ABN AMRO Bank is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

47.7% of shares of all “Banks” companies are owned by institutional investors. 9.9% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

ABN AMRO Bank peers beat ABN AMRO Bank on 10 of the 14 factors compared.

ABN AMRO Bank Company Profile

ABN AMRO Bank N.V. provides various banking products and financial services to retail, private, and business clients in the Netherlands and internationally. It operates through three segments: Personal & Business Banking, Wealth Management, and Corporate Banking. The company provides savings and deposits products; investment and insurance products; and consumer, personal, car, and home improvement loan. It also issues, promotes, manages, and processes credit cards; trade finance, international payments, and treasury management; corporate finance and equity capital market; and revolving credit card facilities and pension schemes, as well as consumer credit and mortgages; and life and non-life insurance products. In addition, it offers asset-based solutions, including working capital solutions, equipment leases and loans, and vendor lease services; private banking and wealth-management-related services; and derivatives and equity clearing services. The company was incorporated in 2009 and is headquartered in Amsterdam, the Netherlands. ABN AMRO Bank N.V. operates as a subsidiary of Stichting Administratiekantoor Continuïteit Abn Amro Bank.