HDB vs. RY, MUFG, TD, IBN, SMFG, SAN, BBVA, BMO, ING, and CM
Should you be buying HDFC Bank stock or one of its competitors? The main competitors of HDFC Bank include Royal Bank of Canada (RY), Mitsubishi UFJ Financial Group (MUFG), Toronto-Dominion Bank (TD), ICICI Bank (IBN), Sumitomo Mitsui Financial Group (SMFG), Banco Santander (SAN), Banco Bilbao Vizcaya Argentaria (BBVA), Bank of Montreal (BMO), ING Groep (ING), and Canadian Imperial Bank of Commerce (CM). These companies are all part of the "commercial banks, not elsewhere classified" industry.
HDFC Bank (NYSE:HDB) and Royal Bank of Canada (NYSE:RY) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their media sentiment, institutional ownership, earnings, dividends, profitability, risk, valuation, analyst recommendations and community ranking.
HDFC Bank pays an annual dividend of $0.60 per share and has a dividend yield of 1.0%. Royal Bank of Canada pays an annual dividend of $4.12 per share and has a dividend yield of 3.9%. HDFC Bank pays out 18.4% of its earnings in the form of a dividend. Royal Bank of Canada pays out 51.1% 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.
HDFC Bank has a net margin of 15.71% compared to Royal Bank of Canada's net margin of 12.12%. HDFC Bank's return on equity of 15.45% beat Royal Bank of Canada's return on equity.
17.6% of HDFC Bank shares are owned by institutional investors. Comparatively, 45.3% of Royal Bank of Canada shares are owned by institutional investors. 1.0% of HDFC Bank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Royal Bank of Canada received 279 more outperform votes than HDFC Bank when rated by MarketBeat users. However, 69.13% of users gave HDFC Bank an outperform vote while only 55.78% of users gave Royal Bank of Canada an outperform vote.
Royal Bank of Canada has a consensus price target of $133.25, suggesting a potential upside of 25.25%. Given Royal Bank of Canada's higher possible upside, analysts clearly believe Royal Bank of Canada is more favorable than HDFC Bank.
HDFC Bank has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.
Royal Bank of Canada has higher revenue and earnings than HDFC Bank. Royal Bank of Canada is trading at a lower price-to-earnings ratio than HDFC Bank, indicating that it is currently the more affordable of the two stocks.
In the previous week, Royal Bank of Canada had 17 more articles in the media than HDFC Bank. MarketBeat recorded 26 mentions for Royal Bank of Canada and 9 mentions for HDFC Bank. HDFC Bank's average media sentiment score of 1.41 beat Royal Bank of Canada's score of 0.38 indicating that HDFC Bank is being referred to more favorably in the media.
Summary
HDFC Bank and Royal Bank of Canada tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HDB and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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