EFG International (OTCMKTS:EFGXY) versus ING Groep (NYSE:ING) Critical Comparison

ING Groep (NYSE:ING) and EFG International (OTCMKTS:EFGXY) are both financial services companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings for ING Groep and EFG International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ING Groep	0	2	3	0	2.60
EFG International	0	1	0	0	2.00

ING Groep presently has a consensus price target of $19.09, indicating a potential upside of 35.66%. Given ING Groep’s stronger consensus rating and higher possible upside, research analysts plainly believe ING Groep is more favorable than EFG International.

Insider & Institutional Ownership

4.4% of ING Groep shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares ING Groep and EFG International’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ING Groep	$20.48 billion	2.56	$12.78 billion	$1.69	8.33
EFG International	N/A	N/A	N/A	C$0.14	77.80

ING Groep has higher revenue and earnings than EFG International. ING Groep is trading at a lower price-to-earnings ratio than EFG International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ING Groep and EFG International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ING Groep	28.40%	10.32%	0.57%
EFG International	N/A	N/A	N/A

Dividends

ING Groep pays an annual dividend of $0.64 per share and has a dividend yield of 4.5%. EFG International pays an annual dividend of C$0.18 per share and has a dividend yield of 1.7%. ING Groep pays out 37.9% of its earnings in the form of a dividend. EFG International pays out 128.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ING Groep is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

ING Groep beats EFG International on 11 of the 12 factors compared between the two stocks.

About ING Groep

ING Groep N.V., a financial institution, provides various banking products and services in the Netherlands, Belgium, Rest of Europe, North America, Latin America, Asia, and Australia. It operates in six segments: Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, Wholesale Banking, and Corporate Line Banking. The company accepts various deposits, such as current and savings accounts. It also offers business lending products; consumer lending products, such as residential mortgage loans, term loans, and other consumer lending loans; and secured and unsecured lending services. in addition, the company provides debt capital market, working capital solutions, export finance, daily banking, treasury and risk, and corporate finance solutions; and specialized lending, debt and equity market solutions, payments and cash management, and trade and treasury services, as well as savings, investment, insurance, mortgage, and digital banking services; and SME loans. It serves individual customers, corporate clients, and financial institutions. ING Groep N.V. was founded in 1762 and is headquartered in Amsterdam, the Netherlands.

About EFG International

EFG International AG, together with its subsidiaries, provides private banking, wealth management, and asset management services. It offers investment solutions, including discretionary mandates, structured products, trading services, and Islamic solutions; wealth planning and trust services; credit and financing services, such as Islamic, property, and investment financing; and eBanking services, including mobile banking and security services. The company also provides other banking services consisting of custody, foreign exchange and treasury, and trading services, as well as accounts and cards, and metals; and supports independent asset managers to set up private label funds. It operates in Europe, Asia Pacific, the Americas, and the Middle East. EFG International AG was founded in 1995 and is headquartered in Zurich, Switzerland.