HDFC Bank (HDB) Competitors

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

Do analysts prefer HDB or BAC?

Bank of America has a consensus target price of $54.64, suggesting a potential upside of 9.19%. Given Bank of America's stronger consensus rating and higher probable upside, analysts clearly believe Bank of America is more favorable than HDFC Bank.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HDFC Bank	0 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	2.75
Bank of America	0 Sell rating(s)	5 Hold rating(s)	21 Buy rating(s)	0 Strong Buy rating(s)	2.81

Do institutionals and insiders believe in HDB or BAC?

17.6% of HDFC Bank shares are held by institutional investors. Comparatively, 70.7% of Bank of America shares are held by institutional investors. 1.0% of HDFC Bank shares are held by company insiders. Comparatively, 0.3% of Bank of America shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Which has more volatility & risk, HDB or BAC?

HDFC Bank has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Which has preferable earnings and valuation, HDB or BAC?

Bank of America has lower revenue, but higher earnings 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
HDFC Bank	$2.50T	0.07	$7.88B	$1.63	21.56
Bank of America	$192.43B	1.93	$27.13B	$3.42	14.63

Does the media refer more to HDB or BAC?

In the previous week, Bank of America had 120 more articles in the media than HDFC Bank. MarketBeat recorded 134 mentions for Bank of America and 14 mentions for HDFC Bank. Bank of America's average media sentiment score of 1.04 beat HDFC Bank's score of 0.86 indicating that Bank of America is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
HDFC Bank	6 Very Positive mention(s)	3 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Bank of America	83 Very Positive mention(s)	17 Positive mention(s)	24 Neutral mention(s)	5 Negative mention(s)	2 Very Negative mention(s)	Positive

Is HDB or BAC a better dividend stock?

HDFC Bank pays an annual dividend of $0.32 per share and has a dividend yield of 0.9%. Bank of America pays an annual dividend of $1.12 per share and has a dividend yield of 2.2%. HDFC Bank pays out 19.6% of its earnings in the form of a dividend. Bank of America pays out 32.7% 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. Bank of America has increased 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.

Is HDB or BAC more profitable?

Bank of America has a net margin of 14.81% compared to HDFC Bank's net margin of 14.49%. HDFC Bank's return on equity of 11.60% beat Bank of America's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
HDFC Bank	14.49%	11.60%	1.60%
Bank of America	14.81%	10.25%	0.84%

Summary

Bank of America beats HDFC Bank on 13 of the 20 factors compared between the two stocks.