Bank of N.T. Butterfield & Son (NYSE:NTB) versus Alior Bank (OTCMKTS:ALORY) Financial Contrast

Alior Bank (OTCMKTS:ALORY) and Bank of N.T. Butterfield & Son (NYSE:NTB) are both financial services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

62.7% of Bank of N.T. Butterfield & Son shares are owned by institutional investors. 1.2% of Bank of N.T. Butterfield & Son shares are owned by 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Alior Bank and Bank of N.T. Butterfield & Son, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alior Bank	0	0	0	0	N/A
Bank of N.T. Butterfield & Son	0	0	4	0	3.00

Bank of N.T. Butterfield & Son has a consensus price target of $33.50, suggesting a potential upside of 9.23%. Given Bank of N.T. Butterfield & Son’s higher possible upside, analysts clearly believe Bank of N.T. Butterfield & Son is more favorable than Alior Bank.

Profitability

This table compares Alior Bank and Bank of N.T. Butterfield & Son’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alior Bank	N/A	N/A	N/A
Bank of N.T. Butterfield & Son	29.60%	24.29%	1.72%

Valuation and Earnings

This table compares Alior Bank and Bank of N.T. Butterfield & Son’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alior Bank	N/A	N/A	N/A	C$1.48	1.40
Bank of N.T. Butterfield & Son	$583.22 million	2.64	$225.49 million	$4.56	6.73

Bank of N.T. Butterfield & Son has higher revenue and earnings than Alior Bank. Alior Bank is trading at a lower price-to-earnings ratio than Bank of N.T. Butterfield & Son, indicating that it is currently the more affordable of the two stocks.

Summary

Bank of N.T. Butterfield & Son beats Alior Bank on 10 of the 10 factors compared between the two stocks.

About Alior Bank

Alior Bank S.A. provides banking products and services for individuals, businesses, and enterprises in Poland. The company offers personal and savings accounts; personal banking; investment products; credits and loans; mortgage products; cards; and insurance services. It also provides bills and cards, trade finance, deposits, treasury products, deposits and investment services, internet banking, and operating and financial leasing services, as well as issues commercial bonds. In addition, the company offers retirement pension products and investments fund services; and operates currency trading platforms. Alior Bank S.A. was incorporated in 2008 and is headquartered in Warsaw, Poland.

About Bank of N.T. Butterfield & Son

The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. It accepts retail and corporate checking, savings, term, and interest bearing and non-interest bearing deposits. The company's lending portfolio includes residential mortgage lending, automobile lending, consumer financing, credit cards, overdraft facilities, commercial real estate lending, and commercial and industrial loans, as well as overdraft facilities to commercial and corporate customers. It also offers investment products and services; and cash and liquidity management, foreign exchange, custody administration, and settlement services. In addition, the company provides personal and property/auto insurance products; letters of credit; and cash management, payroll, remote banking, money market, advisory, brokerage, trust, estate, company management, wealth management, and fiduciary services. Further, it offers debit and credit cards; automated teller machines; and personal and business deposit, merchant acquiring, residential and commercial mortgages, and mobile and internet banking services. The company operates through offices in the Cayman Islands, Guernsey, Jersey, the United Kingdom, The Bahamas, Switzerland, Singapore, Mauritius, and Canada. It also operates in Bermuda and the Cayman Islands. The company was founded in 1784 and is headquartered in Hamilton, Bermuda.