Credicorp (NYSE:BAP) and DNB ASA/S (OTCMKTS:DNHBY) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

66.4% of Credicorp shares are held by institutional investors. Comparatively, 0.1% of DNB ASA/S shares are held by institutional investors. 15.9% of Credicorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Credicorp and DNB ASA/S’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Credicorp $4.83 billion 3.70 $1.25 billion $15.74 14.24
DNB ASA/S $8.42 billion 3.29 $2.64 billion $1.55 11.19

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

Dividends

Credicorp pays an annual dividend of $4.39 per share and has a dividend yield of 2.0%. DNB ASA/S pays an annual dividend of $0.72 per share and has a dividend yield of 4.2%. Credicorp pays out 27.9% of its earnings in the form of a dividend. DNB ASA/S pays out 46.5% 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. Credicorp has raised its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Credicorp and DNB ASA/S, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Credicorp 0 0 4 0 3.00
DNB ASA/S 0 0 0 0 N/A

Credicorp presently has a consensus target price of $266.00, suggesting a potential upside of 18.70%. Given Credicorp’s higher possible upside, equities analysts clearly believe Credicorp is more favorable than DNB ASA/S.

Profitability

This table compares Credicorp and DNB ASA/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Credicorp 25.82% 18.21% 2.42%
DNB ASA/S 32.86% 10.69% 0.83%

Volatility and Risk

Credicorp has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, DNB ASA/S has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Summary

Credicorp beats DNB ASA/S on 11 of the 16 factors compared between the two stocks.

Credicorp Company Profile

Credicorp Ltd., through its banking and non-banking subsidiaries, provides a range of financial, insurance, and health services and products primarily in Peru and internationally. It operates through four segments: Banking, Insurance, Pension Funds, and Investment Banking. The company offers deposits, current accounts, loans, and credit facilities; and provides private pension fund management services to affiliated pensioners. It also issues insurance policies to cover losses in commercial property, transportation, marine vessels, automobile, life, health, and pension funds. In addition, the company offers investment brokerage and management services to corporations, institutional investors, governments, and foundations; and engages in structuring and placement of issues in the primary market, as well as the execution and negotiation of operations in the secondary market. Further, it structures securitization processes for companies; and manages mutual funds. Credicorp Ltd. was incorporated in 1995 and is based in Hamilton, Bermuda.

DNB ASA/S Company Profile

DNB ASA provides various banking products and services for retail and corporate customers in Norway and internationally. It operates through Personal customers, Small and Medium-Sized Enterprises, Large Corporates and International Customers, Trading, and Traditional Pension Products segments. The company offers savings and investment products, including saving accounts, home savings products, equities, retirement savings, fixed rate deposits, exchange traded products, bonds and commercial papers, and asset management services; and loans, such as home mortgages, car and consumer loans, trade finance, and export financing, as well as overdraft facilities, bank guarantees, and leasing and factoring services. It also provides various cards; a range of insurance products comprising car, boat, motor vehicle, household contents, home, holiday home, travel, and life insurance products, as well as pet insurance for cats and dogs; and pension plans. In addition, the company offers investment banking advisory and financing services, such as mergers and acquisitions, and equity and debt capital markets for corporations and private equity firms; and foreign exchange and treasury, cash management, research, commodities, equities, corporate finance, interest rates, securities, real estate broking, and Internet and mobile banking services. It offers its products and services to various sectors, including energy; financial institutions; healthcare; manufacturing; packaging and forest products; seafood; shipping, offshore, and logistics; and telecom, media, and technology. The company distributes its products and services through its distribution network comprising branches, telephone banking, digital banking, and real estate broking, as well as external channels, such as post offices, and in-store postal and banking outlets. DNB ASA was founded in 1822 and is headquartered in Oslo, Norway.

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