Contrasting DBS Group (OTCMKTS:DBSDY) & Credicorp (NYSE:BAP)

Credicorp (NYSE:BAP) and DBS Group (OTCMKTS:DBSDY) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Insider and Institutional Ownership

89.8% of Credicorp shares are held by institutional investors. Comparatively, 0.2% of DBS Group shares are held by institutional investors. 15.9% of Credicorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Credicorp and DBS Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credicorp	$7.00 billion	3.21	$1.47 billion	$22.19	12.73
DBS Group	$29.04 billion	4.18	$8.45 billion	N/A	N/A

DBS Group has higher revenue and earnings than Credicorp.

Risk & Volatility

Credicorp has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, DBS Group has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Credicorp and DBS Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credicorp	0	4	4	1	2.67
DBS Group	0	0	0	1	4.00

Credicorp presently has a consensus target price of $265.17, suggesting a potential downside of 6.15%. Given Credicorp’s higher probable upside, equities research analysts clearly believe Credicorp is more favorable than DBS Group.

Dividends

Credicorp pays an annual dividend of $11.01 per share and has a dividend yield of 3.9%. DBS Group pays an annual dividend of $7.14 per share and has a dividend yield of 4.2%. Credicorp pays out 49.6% of its earnings in the form of a dividend. Credicorp has raised its dividend for 3 consecutive years.

Profitability

This table compares Credicorp and DBS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Credicorp	23.59%	19.50%	2.68%
DBS Group	N/A	N/A	N/A

Summary

Credicorp beats DBS Group on 9 of the 15 factors compared between the two stocks.

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.

About DBS Group

DBS Group Holdings Ltd provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. The company’s Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. Its Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The company’s Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore.