Sberbank of Russia (OTCMKTS:SBRCY – Get Rating) and TowneBank (NASDAQ:TOWN – Get Rating) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Sberbank of Russia pays an annual dividend of $0.85 per share and has a dividend yield of 128.8%. TowneBank pays an annual dividend of $0.92 per share and has a dividend yield of 4.1%. TowneBank pays out 36.9% of its earnings in the form of a dividend. TowneBank has increased its dividend for 11 consecutive years.
Earnings and Valuation
This table compares Sberbank of Russia and TowneBank’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sberbank of Russia||$49.52 billion||0.08||$16.97 billion||N/A||N/A|
|TowneBank||$743.51 million||2.21||$188.99 million||$2.49||9.07|
Insider & Institutional Ownership
0.1% of Sberbank of Russia shares are owned by institutional investors. Comparatively, 52.8% of TowneBank shares are owned by institutional investors. 8.1% of TowneBank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Sberbank of Russia has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, TowneBank has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Sberbank of Russia and TowneBank, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sberbank of Russia||0||0||0||0||N/A|
TowneBank has a consensus price target of $28.00, indicating a potential upside of 23.95%. Given TowneBank’s higher possible upside, analysts clearly believe TowneBank is more favorable than Sberbank of Russia.
This table compares Sberbank of Russia and TowneBank’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sberbank of Russia||40.80%||21.45%||2.97%|
Sberbank of Russia beats TowneBank on 8 of the 14 factors compared between the two stocks.
About Sberbank of Russia
Sberbank of Russia, together with its subsidiaries, provides corporate and retail banking products and services to individuals, small businesses, corporate clients, and financial institutions. The company offers deposit products; pension accounts; payment, transfer, brokerage, and asset management services; car, housing, education, and consumer loans; mortgages; debit and credit cards, and overdraft service; and refinancing products. It also provides derivative, financial instrument, foreign currency, precious metal, corporate structured, and commodities and securities products, as well as debt and capital markets funding, documentary, and other commission services. In addition, it offers life, property, bank card, accident, liability, trust management, investment and universal life, travel, and mutual investment funds insurance products, as well as individual pension plans and corporate pension programs. Additionally, the company provides business bank accounts, platform for exporters and importers, merchant acquiring and international trading services, and corporate cards for small businesses; and loans, investment products and capital markets services, fund investment services, and banking services for corporate clients. It also provides trade finance, interbank lending, currency risk hedging, and treasury services; deposits, custody services, and electronic trading systems; and settlement and cash collection services to financial institutions. As of December 31, 2020, the company operated 11 Regional banks and 14,162 branches in Russia. The company also has operations in 18 countries internationally. Sberbank of Russia was founded in 1841 and is headquartered in Moscow, Russia.
TowneBank engages in the provision of retail and commercial banking services to individuals and small and medium size businesses. It operates through the following segments: Banking, Realty, and Insurance. The Banking segment offers loan and deposit services to retail and commercial customers. The Realty segment focuses on the provision of residential real estate services and originations of a variety of mortgage loans. The Insurance segment includes the provision of full-service commercial and retail insurance, employee benefit services, and travel insurance. The company was founded by R. Scott Morgan on September 3, 1998 and is headquartered in Portsmouth, VA.
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