Nomura (NYSE:NMR) and Credit Suisse Group (NYSE:CS) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Dividends
Nomura pays an annual dividend of $0.32 per share and has a dividend yield of 5.3%. Credit Suisse Group pays an annual dividend of $0.05 per share and has a dividend yield of 0.4%. Nomura pays out 51.6% of its earnings in the form of a dividend. Credit Suisse Group pays out 3.8% 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. Credit Suisse Group has raised its dividend for 1 consecutive years.
Institutional & Insider Ownership
0.9% of Nomura shares are held by institutional investors. Comparatively, 2.1% of Credit Suisse Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Nomura and Credit Suisse Group's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Nomura | $17.93 billion | 1.03 | $2.00 billion | $0.62 | 9.76 |
Credit Suisse Group | $36.02 billion | 0.94 | $3.44 billion | $1.33 | 10.44 |
Credit Suisse Group has higher revenue and earnings than Nomura. Nomura is trading at a lower price-to-earnings ratio than Credit Suisse Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Nomura and Credit Suisse Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Nomura | 0 | 1 | 3 | 0 | 2.75 |
Credit Suisse Group | 0 | 5 | 9 | 0 | 2.64 |
Credit Suisse Group has a consensus target price of $8.50, suggesting a potential downside of 38.80%. Given Credit Suisse Group's higher possible upside, analysts clearly believe Credit Suisse Group is more favorable than Nomura.
Volatility and Risk
Nomura has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Credit Suisse Group has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.
Profitability
This table compares Nomura and Credit Suisse Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Nomura | 13.00% | 8.41% | 0.54% |
Credit Suisse Group | 11.83% | 8.32% | 0.47% |
Summary
Credit Suisse Group beats Nomura on 10 of the 16 factors compared between the two stocks.