FirstRand (OTCMKTS:FANDF) and National Bank of Canada (OTCMKTS:NTIOF) Head to Head Contrast

FirstRand (OTCMKTS:FANDFGet Free Report) and National Bank of Canada (OTCMKTS:NTIOFGet Free Report) are both financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Valuation & Earnings

This table compares FirstRand and National Bank of Canada’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstRand N/A N/A N/A $2.94 1.23
National Bank of Canada $17.32 billion 1.48 $2.47 billion $6.94 10.87

National Bank of Canada has higher revenue and earnings than FirstRand. FirstRand is trading at a lower price-to-earnings ratio than National Bank of Canada, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for FirstRand and National Bank of Canada, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstRand 0 1 0 0 2.00
National Bank of Canada 0 0 0 0 N/A

Profitability

This table compares FirstRand and National Bank of Canada’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstRand N/A N/A N/A
National Bank of Canada 14.28% 17.43% 0.81%

Institutional and Insider Ownership

0.1% of National Bank of Canada shares are owned by institutional investors. 0.3% of National Bank of Canada shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

FirstRand pays an annual dividend of $1.17 per share and has a dividend yield of 32.3%. National Bank of Canada pays an annual dividend of $3.02 per share and has a dividend yield of 4.0%. FirstRand pays out 39.7% of its earnings in the form of a dividend. National Bank of Canada pays out 43.5% 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. FirstRand is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

National Bank of Canada beats FirstRand on 8 of the 10 factors compared between the two stocks.

About FirstRand

(Get Free Report)

FirstRand Limited, together with its subsidiaries, provides transactional, lending, investment, and insurance products and services in South Africa, rest of Africa, the United Kingdom, Europe, Asia, the United States, and Australia. The company offers deposit and savings products; personal loans; and asset and invoice finance, as well as SME commercial, residential, and buy-to-let mortgages. It also provides life and short-term insurance products; and vehicle finance, instalment credit and fleet management, and corporate and investment banking services. In addition, the company offers asset management, as well as vehicle-related insurance services. It serves retail and public sector customers, SMEs, business, agricultural, and medium corporates. The company was incorporated in 1966 and is based in Sandton, South Africa.

About National Bank of Canada

(Get Free Report)

National Bank of Canada provides financial services to individuals, businesses, institutional clients, and governments in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, and savings and investment solutions; various insurance products; and commercial banking services, such as credit, and deposit, investment solutions, international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complimentary services. The Wealth Management segment provides full-service brokerage, private banking, direct brokerage, investment solutions, administrative and trade execution, transaction products, and trust and estate services. The Financial Markets segment offers corporate banking, advisory, and capital markets services; and project financing, debt, and equity underwriting; advisory services in the areas of mergers and acquisitions, and financing. The U.S. Specialty Finance and International segment provides specialty finance products; and personal and commercial banking in Cambodia. National Bank of Canada was founded in 1859 and is headquartered in Montreal, Canada.

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