NU (NYSE:NU – Get Free Report) and ICICI Bank (NYSE:IBN – Get Free Report) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Profitability
This table compares NU and ICICI Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NU | 18.19% | 30.68% | 4.72% |
| ICICI Bank | 24.57% | 14.17% | 1.83% |
Risk and Volatility
NU has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, ICICI Bank has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NU | 0 | 1 | 12 | 1 | 3.00 |
| ICICI Bank | 0 | 1 | 0 | 0 | 2.00 |
NU currently has a consensus price target of $18.26, suggesting a potential upside of 28.37%. Given NU’s stronger consensus rating and higher probable upside, analysts clearly believe NU is more favorable than ICICI Bank.
Dividends
NU pays an annual dividend of $1.67 per share and has a dividend yield of 11.7%. ICICI Bank pays an annual dividend of $0.21 per share and has a dividend yield of 0.8%. NU pays out 287.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ICICI Bank pays out 13.3% of its earnings in the form of a dividend.
Institutional & Insider Ownership
84.0% of NU shares are owned by institutional investors. Comparatively, 18.2% of ICICI Bank shares are owned by institutional investors. 1.2% of NU shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares NU and ICICI Bank”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NU | $10.63 billion | 6.45 | $2.87 billion | $0.58 | 24.53 |
| ICICI Bank | $2,163.79 billion | 0.04 | $6.02 billion | $1.58 | 16.48 |
ICICI Bank has higher revenue and earnings than NU. ICICI Bank is trading at a lower price-to-earnings ratio than NU, indicating that it is currently the more affordable of the two stocks.
Summary
NU beats ICICI Bank on 12 of the 17 factors compared between the two stocks.
About NU
Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.
About ICICI Bank
ICICI Bank Limited provides various banking products and services in India and internationally. It operates through Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, and Others segments. The company offers savings, salary, pension, current, and other accounts; and time, fixed, recurring, and security deposits services. It also provides home, car, two-wheeler, personal, gold, and commercial business loans, as well as loans against securities and other loans; business loans, including working capital finance, term loans, collateral free loans, loans without financials, finance for importers and exporters, and overdraft facilities, as well as loans for new entities and card swipes; and credit, debit, prepaid, travel, forex, and corporate cards. In addition, the company offers pockets wallet; fixed income products; investment products, such as mutual funds, gold monetization schemes, initial public offerings, and other online investment services; and agri and rural business, farmer finance, tractor loans, and micro banking services, as well as other services to agri corporates. Further, it provides portfolio management, trade, foreign exchange, locker, private and NRI banking, and cash management services; family wealth and demat accounts; commercial and investment banking, capital market, custodial, and institutional banking services; health, personal accident, fire, and motor insurance, as well as distributes general and life insurance products; and Internet, mobile, and phone banking services. Additionally, the company offers securities investment, broking, trading, and underwriting services; and merchant banking, trusteeship, housing finance, pension fund management, asset management, investment advisory, points of presence, and private equity/venture capital fund management services. ICICI Bank Limited was founded in 1955 and is headquartered in Mumbai, India.
Receive News & Ratings for NU Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NU and related companies with MarketBeat.com's FREE daily email newsletter.
