HDB vs. RY, MUFG, TD, IBN, SMFG, SAN, ING, BBVA, BMO, and LYG
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), ING Groep (ING), Banco Bilbao Vizcaya Argentaria (BBVA), Bank of Montreal (BMO), and Lloyds Banking Group (LYG). 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 companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, media sentiment, valuation, dividends and community ranking.
17.6% of HDFC Bank shares are held by institutional investors. Comparatively, 45.3% of Royal Bank of Canada shares are held by institutional investors. 1.0% of HDFC Bank shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
HDFC Bank has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.
Royal Bank of Canada received 282 more outperform votes than HDFC Bank when rated by MarketBeat users. However, 68.91% of users gave HDFC Bank an outperform vote while only 55.54% of users gave Royal Bank of Canada an outperform vote.
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.
Royal Bank of Canada has a consensus price target of $133.25, indicating a potential upside of 20.40%. Given Royal Bank of Canada's higher possible upside, analysts clearly believe Royal Bank of Canada is more favorable than HDFC Bank.
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 $4.08 per share and has a dividend yield of 3.7%. HDFC Bank pays out 18.4% of its earnings in the form of a dividend. Royal Bank of Canada pays out 50.6% 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 14.69% compared to Royal Bank of Canada's net margin of 12.12%. Royal Bank of Canada's return on equity of 14.87% beat HDFC Bank's return on equity.
In the previous week, HDFC Bank had 16 more articles in the media than Royal Bank of Canada. MarketBeat recorded 29 mentions for HDFC Bank and 13 mentions for Royal Bank of Canada. Royal Bank of Canada's average media sentiment score of 0.78 beat HDFC Bank's score of 0.52 indicating that Royal Bank of Canada is being referred to more favorably in the news 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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