Critical Comparison: Credicorp (NYSE:BAP) & DBS Group (OTCMKTS:DBSDY)

DBS Group (OTCMKTS:DBSDY) and Credicorp (NYSE:BAP) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Earnings & Valuation

This table compares DBS Group and Credicorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DBS Group	$29.04 billion	4.18	$8.45 billion	N/A	N/A
Credicorp	$7.00 billion	3.21	$1.47 billion	$22.19	12.73

DBS Group has higher revenue and earnings than Credicorp.

Institutional and Insider Ownership

0.2% of DBS Group shares are held by institutional investors. Comparatively, 89.8% of Credicorp shares are held by institutional investors. 15.9% of Credicorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

DBS Group has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Credicorp has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Profitability

This table compares DBS Group and Credicorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DBS Group	N/A	N/A	N/A
Credicorp	23.59%	19.50%	2.68%

Analyst Ratings

This is a breakdown of current recommendations for DBS Group and Credicorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DBS Group	0	0	0	1	4.00
Credicorp	0	4	4	1	2.67

Credicorp has a consensus target price of $265.17, indicating a potential downside of 6.15%. Given Credicorp’s higher probable upside, analysts plainly believe Credicorp is more favorable than DBS Group.

Dividends

DBS Group pays an annual dividend of $7.14 per share and has a dividend yield of 4.2%. Credicorp pays an annual dividend of $11.01 per share and has a dividend yield of 3.9%. Credicorp pays out 49.6% of its earnings in the form of a dividend. Credicorp has raised its dividend for 3 consecutive years.

Summary

Credicorp beats DBS Group on 9 of the 15 factors compared between the two stocks.

About DBS Group

DBS Group Holdings Ltd provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. The company’s Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. Its Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The company’s Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore.

About Credicorp

Credicorp Ltd. provides various financial, insurance, and health services and products primarily in Peru and internationally. It operates through Universal Banking, Insurance and Pensions, Microfinance, and Investment Banking and Equity Management segments. The Universal Banking segment grants various credits and financial instruments to individuals and legal entities; and various deposits and current accounts. The Insurance and Pensions segment issues insurance policies to cover losses in commercial property, transport, marine vessels, automobiles, life, health, and pensions; and management services for private pension funds. The Microfinance segment provides management of loans, deposits, and current accounts for small and microenterprises. The Investment Banking and Equity Management segment is involved in provision of brokerage and investment management services for corporations, institutional investors, governments, and foundations; structuring and placement of issues in the primary market; execution and negotiation of transactions in the secondary market; and structuring of securitization processes for corporate customers and manages mutual funds. The company was founded in 1889 and is headquartered in Lima, Peru.