Credit Agricole (OTCMKTS:CRARY – Get Free Report) and Arrow Financial (NASDAQ:AROW – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Analyst Ratings
This is a summary of current ratings and price targets for Credit Agricole and Arrow Financial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Credit Agricole | 0 | 4 | 1 | 0 | 2.20 |
| Arrow Financial | 0 | 3 | 3 | 0 | 2.50 |
Arrow Financial has a consensus target price of $41.62, suggesting a potential upside of 7.50%. Given Arrow Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Arrow Financial is more favorable than Credit Agricole.
Valuation & Earnings
This table compares Credit Agricole and Arrow Financial”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Credit Agricole | $31.76 billion | 1.62 | $8.00 billion | $1.12 | 7.60 |
| Arrow Financial | $175.20 million | 4.09 | $43.95 million | $3.10 | 12.49 |
Credit Agricole has higher revenue and earnings than Arrow Financial. Credit Agricole is trading at a lower price-to-earnings ratio than Arrow Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Credit Agricole and Arrow Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Credit Agricole | 23.39% | 31.64% | 1.14% |
| Arrow Financial | 20.56% | 12.13% | 1.17% |
Institutional and Insider Ownership
0.6% of Credit Agricole shares are owned by institutional investors. Comparatively, 46.7% of Arrow Financial shares are owned by institutional investors. 3.5% of Arrow Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Credit Agricole has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Arrow Financial has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.
Dividends
Credit Agricole pays an annual dividend of $0.60 per share and has a dividend yield of 7.1%. Arrow Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. Credit Agricole pays out 53.6% of its earnings in the form of a dividend. Arrow Financial pays out 38.7% 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. Arrow Financial has increased its dividend for 7 consecutive years.
Summary
Arrow Financial beats Credit Agricole on 12 of the 17 factors compared between the two stocks.
About Credit Agricole
Crédit Agricole S.A. provides retail, corporate, insurance, and investment banking products and services in France and internationally. It operates through French Retail Banking Regional Banks; French Retail Banking – LCL; International Retail Banking; Asset Gathering; Large Customers; and Specialised Financial Services segments. The company offers banking products and services, finance, savings, wealth management, payment, and cash flow management services; consumer finance products; savings/retirement, death and disability/creditor/group, and property and casualty insurance products; investment solutions; and banking and specialized financial services. It also provides investment banking, structured finance, international trade finance, commercial banking, capital market, and syndication services; financing solutions for property and equipment investment and renewal requirements; trade receivable financing and management solutions for corporates; asset servicing solutions for investment products, as well as various asset classes, such as execution, clearing, forex, security lending and borrowing, custody, depositary bank, fund administration, middle-office outsourcing solutions, and fund distribution support and issuer services; and online banking services. The company serves retail customers, corporates, banks and financial institutions, government agencies, and local authorities. Crédit Agricole S.A. was founded in 1894 and is headquartered in Montrouge, France. Crédit Agricole S.A. operates as a subsidiary of SAS Rue La Boetie.
About Arrow Financial
Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company’s deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time deposits, and other time deposits. Its lending activities comprise commercial loans, such as term loans, time notes, and lines of credit; and commercial real estate loans to finance real estate purchases, refinancing, expansions, and enhancement to commercial properties, as well as commercial construction and land development loans to finance projects. The company’s lending activities also include consumer installment loans to finance personal expenditures, personal lines of credit, overdraft protection, and automobile loans; and residential real estate loans, fixed home equity loans, and home equity lines of credit for consumers to finance home improvements, debt consolidation, education, and other uses. In addition, it maintains an indirect lending program. Further, the company provides retirement planning, trust, and estate administration services for individuals, as well as pension, profit-sharing, and employee benefit plan administration services for corporations. Additionally, it offers insurance agency services comprising group health care policies and life insurance, and property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. It operates in the northeastern region of New York State in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany, and Schenectady counties. Arrow Financial Corporation was founded in 1851 and is headquartered in Glens Falls, New York.
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