Comparing Comerica (NYSE:CMA) and Standard Chartered (OTCMKTS:SCBFF)

Standard Chartered (OTCMKTS:SCBFF) and Comerica (NYSE:CMA) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Standard Chartered and Comerica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard Chartered	9.26%	8.01%	0.47%
Comerica	16.71%	19.41%	1.17%

Earnings and Valuation

This table compares Standard Chartered and Comerica’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Chartered	$37.48 billion	0.61	$3.47 billion	$1.06	8.08
Comerica	$5.25 billion	1.39	$881.00 million	$6.44	8.54

Standard Chartered has higher revenue and earnings than Comerica. Standard Chartered is trading at a lower price-to-earnings ratio than Comerica, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

80.7% of Comerica shares are held by institutional investors. 0.2% of Comerica shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Standard Chartered and Comerica, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Chartered	1	1	0	0	1.50
Comerica	2	13	6	0	2.19

Standard Chartered presently has a consensus target price of $930.00, indicating a potential upside of 10,751.81%. Comerica has a consensus target price of $56.02, indicating a potential upside of 1.88%. Given Standard Chartered’s higher probable upside, equities analysts clearly believe Standard Chartered is more favorable than Comerica.

Risk and Volatility

Standard Chartered has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Comerica has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Dividends

Standard Chartered pays an annual dividend of $0.42 per share and has a dividend yield of 4.9%. Comerica pays an annual dividend of $2.84 per share and has a dividend yield of 5.2%. Standard Chartered pays out 39.6% of its earnings in the form of a dividend. Comerica pays out 44.1% 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. Comerica has increased its dividend for 1 consecutive years. Comerica is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Comerica beats Standard Chartered on 13 of the 17 factors compared between the two stocks.

About Standard Chartered

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.

About Comerica

Comerica Incorporated, through its subsidiaries, provides various financial products and services. The company operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments. The Commercial Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, payment solutions, card services, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services for small and middle market businesses, multinational corporations, and governmental entities. The Retail Bank segment provides personal financial services, such as consumer lending, consumer deposit gathering, and mortgage loan origination; and various consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans. The Wealth Management segment offers products and services comprising financial planning, trust and fiduciary services, investment management and advisory, brokerage, private banking, and business transition planning services for affluents, high-net worth and ultra-high-net-worth individuals and families, business owners, and executives, and institutional clients. The Finance segment comprises securities portfolio, and asset and liability management activities. It operates in Texas, California, Michigan, Arizona, and Florida, the United States; and Canada and Mexico. The company was formerly known as DETROITBANK Corporation and changed its name to Comerica Incorporated in July 1982. Comerica Incorporated was founded in 1849 and is headquartered in Dallas, Texas.