Critical Contrast: Akbank T.A.S. (OTCMKTS:AKBTY) versus Park National (NYSE:PRK)

Akbank T.A.S. (OTCMKTS:AKBTY) and Park National (NYSE:PRK) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Earnings and Valuation

This table compares Akbank T.A.S. and Park National’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akbank T.A.S.	$8.80 billion	N/A	$3.67 billion	$1.34	2.62
Park National	$564.30 million	3.58	$126.73 million	$7.80	16.06

Akbank T.A.S. has higher revenue and earnings than Park National. Akbank T.A.S. is trading at a lower price-to-earnings ratio than Park National, indicating that it is currently the more affordable of the two stocks.

Dividends

Akbank T.A.S. pays an annual dividend of $0.09 per share and has a dividend yield of 2.6%. Park National pays an annual dividend of $4.24 per share and has a dividend yield of 3.4%. Akbank T.A.S. pays out 6.7% of its earnings in the form of a dividend. Park National pays out 54.4% 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. Park National has increased its dividend for 7 consecutive years. Park National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Akbank T.A.S. and Park National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akbank T.A.S.	33.72%	42.44%	5.07%
Park National	22.46%	12.17%	1.35%

Insider and Institutional Ownership

62.7% of Park National shares are owned by institutional investors. 2.7% of Park National shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Akbank T.A.S. has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Park National has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Akbank T.A.S. and Park National, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akbank T.A.S.	0	0	0	0	N/A
Park National	0	1	0	0	2.00

Park National has a consensus target price of $130.00, indicating a potential upside of 3.81%. Given Park National’s higher possible upside, analysts clearly believe Park National is more favorable than Akbank T.A.S..

About Akbank T.A.S.

Akbank T.A.S., together with its subsidiaries, provides various banking products and services in Turkey and internationally. It operates through Consumer Banking and Private Banking; Commercial Banking, Corporate Banking, and SME Banking; and Treasury, Other, and Unallovated segments. The company's consumer banking services comprise deposit accounts, retail loans, commercial installment loans, credit cards, insurance products, and asset management services, as well as bank cards, investment funds trading, automatic payment, foreign currency trading, safe deposit box rental, cheques, money transfer, investment banking, and telephone and internet banking. It also offers services to large, medium, and small size corporate and commercial customers that include Turkish Lira (TL) and foreign currency denominated working capital loans financing for investments, foreign trade financing, derivative instruments for hedging purposes of foreign currency and interest risk, letters of credit, foreign currency trading, corporate finance, and deposit and cash management services, as well as project finance loans; and working capital management, delivering cash management services based on customers' requests, such as collection and payment services, and liquidity and information management. In addition, the company engages in treasury activities consisting of TL and foreign currency spot and forward transactions, treasury and government bonds, Eurobonds, and private sector bond transactions, as well as derivative trading activities; and marketing and pricing activities related to treasury products. Further, it provides financial leasing services, investment and pension funds management, and portfolio management, as well as offers payment services and issues electronic money. Akbank T.A.S. was incorporated in 1948 and is headquartered in Istanbul, Turkey.

About Park National

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment; consumer loans, such as automobile loans; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing services; and ParkDirect, a personal banking application. Park National Corporation was founded in 1908 and is headquartered in Newark, Ohio.