HDFC Bank (NYSE:HDB) and OVERSEA-CHINESE/ADR (OTCMKTS:OVCHY) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares HDFC Bank and OVERSEA-CHINESE/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HDFC Bank N/A N/A N/A
OVERSEA-CHINESE/ADR N/A N/A N/A

Institutional and Insider Ownership

19.3% of HDFC Bank shares are owned by institutional investors. Comparatively, 0.0% of OVERSEA-CHINESE/ADR shares are owned by institutional investors. 1.0% of HDFC Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for HDFC Bank and OVERSEA-CHINESE/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HDFC Bank 0 0 0 0 N/A
OVERSEA-CHINESE/ADR 0 1 1 0 2.50

Valuation & Earnings

This table compares HDFC Bank and OVERSEA-CHINESE/ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HDFC Bank $14.81 billion 7.14 $2.74 billion $3.11 39.46
OVERSEA-CHINESE/ADR $9.66 billion 3.45 $4.15 billion N/A N/A

OVERSEA-CHINESE/ADR has lower revenue, but higher earnings than HDFC Bank.

Dividends

HDFC Bank pays an annual dividend of $0.55 per share and has a dividend yield of 0.4%. OVERSEA-CHINESE/ADR pays an annual dividend of $0.60 per share and has a dividend yield of 3.8%. HDFC Bank pays out 17.7% of its earnings in the form of a dividend. HDFC Bank has increased its dividend for 6 consecutive years.

Risk & Volatility

HDFC Bank has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, OVERSEA-CHINESE/ADR has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Summary

HDFC Bank beats OVERSEA-CHINESE/ADR on 7 of the 11 factors compared between the two stocks.

HDFC Bank Company Profile

HDFC Bank Limited provides a range of banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company operates in Treasury, Retail Banking, Wholesale Banking, and Other Banking Business segments. It accepts savings accounts, salary accounts, current accounts, fixed and recurring deposits, demat accounts, safe deposit lockers, and rural accounts, as well as offshore accounts and deposits. The company also offers personal, business, home, consumer durable, car, two wheeler, gold, educational, rural, and term loans; loans for professionals; loans against property, securities, and assets; overdrafts; government sponsored programs; and working capital, healthcare, channel, short term, structured, dealer, and vendor finance, as well as agricultural lending. In addition, it provides credit, debit, and prepaid cards; private banking services; export, import, remittance, bank guarantees, and letter of credit services, as well as merchant and cash management services; life, health, motor, travel, and home insurance products; and investment products, such as mutual funds, equities and derivatives, IPOs, and bonds. Further, the company offers bill discounting, real time gross settlement, bankers to right/public issue, forex, money market, employees trusts, and tax collection services; and investment banking services in the areas of project appraisal, structured finance, loan syndication, debt capital markets, equity placement, mergers and acquisitions, corporate advisory, and capital market advisory services. Additionally, it provides correspondent banking, settlement, custodial, disbursement, clearing, and administrative and fiduciary support services, as well as online and mobile banking services. As of February 18, 2019, the company had 5,000 branches in India. HDFC Bank Limited was founded in 1994 and is based in Mumbai, India.

OVERSEA-CHINESE/ADR Company Profile

Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high net worth individuals. Its Global Corporate/Investment Banking segment provides project financing, overdrafts, trade financing, and deposit accounts; fee-based services, such as cash management and custodian services; investment banking services, including financing solutions, syndicated loans and advisory services, corporate finance services for initial public offerings, secondary fund-raising, and takeovers and mergers; and customized and structured equity-linked financing services. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Treasury and Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as provision of structured treasury products and financial solutions. Its OCBC Wing Hang segment offers commercial banking, consumer financing, share brokerage, and insurance services. The company's Insurance segment provides fund management services, and life and general insurance products. Its Others segment is involved in property and investment holding activities. As of May 7, 2018, the company operated a network of 570 branches and representative offices in 19 countries and regions. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

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