HDFC Bank (HDB) Competitors

Bank of America (NYSE:BAC) and HDFC Bank (NYSE:HDB) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, community ranking, analyst recommendations, media sentiment, dividends and institutional ownership.

Is BAC or HDB more profitable?

HDFC Bank has a net margin of 14.64% compared to Bank of America's net margin of 14.10%. HDFC Bank's return on equity of 12.19% beat Bank of America's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Bank of America	14.10%	10.29%	0.84%
HDFC Bank	14.64%	12.19%	1.67%

Does the MarketBeat Community favor BAC or HDB?

Bank of America received 1712 more outperform votes than HDFC Bank when rated by MarketBeat users. However, 68.25% of users gave HDFC Bank an outperform vote while only 64.75% of users gave Bank of America an outperform vote.

Company	Underperform	Outperform
Bank of America	Outperform Votes 2144 64.75%	Underperform Votes 1167 35.25%
HDFC Bank	Outperform Votes 432 68.25%	Underperform Votes 201 31.75%

Do institutionals and insiders hold more shares of BAC or HDB?

70.7% of Bank of America shares are held by institutional investors. Comparatively, 17.6% of HDFC Bank shares are held by institutional investors. 0.3% of Bank of America shares are held by company insiders. Comparatively, 1.0% of HDFC Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Which has more risk and volatility, BAC or HDB?

Bank of America has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, HDFC Bank has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Do analysts rate BAC or HDB?

Bank of America presently has a consensus price target of $47.50, suggesting a potential upside of 6.45%. Given Bank of America's higher possible upside, research analysts clearly believe Bank of America is more favorable than HDFC Bank.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of America	1 Sell rating(s)	5 Hold rating(s)	17 Buy rating(s)	4 Strong Buy rating(s)	2.89
HDFC Bank	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	3.00

Which has preferable earnings and valuation, BAC or HDB?

Bank of America has higher earnings, but lower revenue than HDFC Bank. Bank of America is trading at a lower price-to-earnings ratio than HDFC Bank, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of America	$103.44B	3.25	$27.13B	$3.36	13.28
HDFC Bank	$2.87T	0.06	$7.47B	$3.30	22.13

Is BAC or HDB a better dividend stock?

Bank of America pays an annual dividend of $1.04 per share and has a dividend yield of 2.3%. HDFC Bank pays an annual dividend of $0.66 per share and has a dividend yield of 0.9%. Bank of America pays out 31.0% of its earnings in the form of a dividend. HDFC Bank pays out 20.0% 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. Bank of America has raised its dividend for 11 consecutive years. Bank of America is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the media refer more to BAC or HDB?

In the previous week, Bank of America had 100 more articles in the media than HDFC Bank. MarketBeat recorded 119 mentions for Bank of America and 19 mentions for HDFC Bank. HDFC Bank's average media sentiment score of 1.21 beat Bank of America's score of 0.90 indicating that HDFC Bank is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Bank of America	64 Very Positive mention(s)	30 Positive mention(s)	22 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive
HDFC Bank	18 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Bank of America beats HDFC Bank on 12 of the 22 factors compared between the two stocks.