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 contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation, risk and media sentiment.

Is HDB or BAC more profitable?

HDFC Bank has a net margin of 15.02% compared to Bank of America's net margin of 14.81%. HDFC Bank's return on equity of 13.85% beat Bank of America's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
HDFC Bank	15.02%	13.85%	1.69%
Bank of America	14.81%	10.25%	0.84%

Do analysts recommend HDB or BAC?

Bank of America has a consensus target price of $50.03, suggesting a potential upside of 5.69%. Given Bank of America's higher possible upside, analysts plainly 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)	1 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	3.00
Bank of America	0 Sell rating(s)	5 Hold rating(s)	17 Buy rating(s)	1 Strong Buy rating(s)	2.83

Do insiders & institutionals have more ownership in HDB or BAC?

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

Which has more risk and volatility, HDB or BAC?

HDFC Bank has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Which has better valuation & earnings, HDB or BAC?

Bank of America has higher revenue and 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	$55.70B	3.42	$8.35B	$3.30	22.82
Bank of America	$192.43B	1.85	$27.13B	$3.36	14.09

Does the media prefer HDB or BAC?

In the previous week, Bank of America had 105 more articles in the media than HDFC Bank. MarketBeat recorded 145 mentions for Bank of America and 40 mentions for HDFC Bank. Bank of America's average media sentiment score of 0.91 beat HDFC Bank's score of 0.62 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	20 Very Positive mention(s)	6 Positive mention(s)	9 Neutral mention(s)	3 Negative mention(s)	2 Very Negative mention(s)	Positive
Bank of America	71 Very Positive mention(s)	36 Positive mention(s)	31 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive

Is HDB or BAC a better dividend stock?

HDFC Bank pays an annual dividend of $0.66 per share and has a dividend yield of 0.9%. Bank of America pays an annual dividend of $1.04 per share and has a dividend yield of 2.2%. HDFC Bank pays out 20.0% of its earnings in the form of a dividend. Bank of America pays out 31.0% 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.

Summary

Bank of America beats HDFC Bank on 11 of the 19 factors compared between the two stocks.