Credicorp (NYSE:BAP) & Intesa Sanpaolo (OTCMKTS:ISNPY) Financial Analysis

Credicorp (NYSE:BAP) and Intesa Sanpaolo (OTCMKTS:ISNPY) 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, institutional ownership, earnings, risk, profitability, valuation and dividends.

Insider & Institutional Ownership

89.8% of Credicorp shares are owned by institutional investors. Comparatively, 1.2% of Intesa Sanpaolo shares are owned by institutional investors. 15.9% of Credicorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Credicorp and Intesa Sanpaolo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credicorp	$8.01 billion	4.62	$1.94 billion	$25.94	15.11
Intesa Sanpaolo	$43.96 billion	2.91	$10.54 billion	$3.72	11.66

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

Volatility & Risk

Credicorp has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Intesa Sanpaolo has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Profitability

This table compares Credicorp and Intesa Sanpaolo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Credicorp	24.81%	20.61%	2.91%
Intesa Sanpaolo	25.19%	14.10%	1.02%

Dividends

Credicorp pays an annual dividend of $14.48 per share and has a dividend yield of 3.7%. Intesa Sanpaolo pays an annual dividend of $1.91 per share and has a dividend yield of 4.4%. Credicorp pays out 55.8% of its earnings in the form of a dividend. Intesa Sanpaolo pays out 51.3% 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 increased its dividend for 3 consecutive years. Intesa Sanpaolo is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations and price targets for Credicorp and Intesa Sanpaolo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credicorp	0	3	5	0	2.62
Intesa Sanpaolo	0	3	4	1	2.75

Credicorp presently has a consensus target price of $377.00, suggesting a potential downside of 3.79%. Given Credicorp’s higher possible upside, equities research analysts plainly believe Credicorp is more favorable than Intesa Sanpaolo.

Summary

Credicorp beats Intesa Sanpaolo on 11 of the 18 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 Intesa Sanpaolo

Intesa Sanpaolo S.p.A. provides various financial products and services primarily in Italy. It operates through six segments: Banca dei Territori, IMI Corporate & Investment Banking, International Subsidiary Banks, Asset Management, Private Banking, and Insurance. The company offers lending and deposit products; private and commercial banking, corporate and transaction banking, structured finance, investment banking, public finance, and capital markets; industrial credit, leasing, and factoring; asset management; life and non-life insurance and pension products; asset and wealth management; private investments; and bancassurance products. The company serves individuals, small and medium-sized businesses, non-profit customers, corporates and financial institutions, public administration, private clients and high net worth individuals, institutional clientele, and other customers. Intesa Sanpaolo S.p.A. was founded in 1998 and is headquartered in Turin, Italy.