Credit Saison (OTCMKTS:CSASF) versus Capital One Financial (NYSE:COF) Critical Comparison

Capital One Financial (NYSE:COF) and Credit Saison (OTCMKTS:CSASF) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Institutional & Insider Ownership

89.8% of Capital One Financial shares are owned by institutional investors. Comparatively, 26.3% of Credit Saison shares are owned by institutional investors. 1.3% of Capital One Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Capital One Financial and Credit Saison, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital One Financial	2	11	6	0	2.21
Credit Saison	0	0	0	0	N/A

Capital One Financial currently has a consensus price target of $137.05, suggesting a potential downside of 4.10%. Given Capital One Financial’s higher possible upside, equities research analysts plainly believe Capital One Financial is more favorable than Credit Saison.

Profitability

This table compares Capital One Financial and Credit Saison’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital One Financial	9.88%	9.24%	1.08%
Credit Saison	N/A	N/A	N/A

Earnings & Valuation

This table compares Capital One Financial and Credit Saison’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital One Financial	$49.48 billion	1.10	$4.89 billion	$11.95	11.96
Credit Saison	N/A	N/A	N/A	C$144.02	0.11

Capital One Financial has higher revenue and earnings than Credit Saison. Credit Saison is trading at a lower price-to-earnings ratio than Capital One Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.7%. Credit Saison pays an annual dividend of C$23.91 per share and has a dividend yield of 151.3%. Capital One Financial pays out 20.1% of its earnings in the form of a dividend. Credit Saison pays out 16.6% 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. Credit Saison is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Capital One Financial beats Credit Saison on 9 of the 12 factors compared between the two stocks.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.

About Credit Saison

Credit Saison Co., Ltd. provides leasing, finance, real estate, entertainment, and payment services in Japan and internationally. The company offers credit cards, prepaid and debit cards, smartphone-based services, and information processing services; internet advertisement agency; marketing consulting; temporary staffing; and contracting services. It also engages in the credit guarantee and finance related businesses; real estate business; real estate leasing activities; and digital marketing and asset management services, as well as develops and manages amusement. Further, it involved in the import and sell of lifestyle goods; cleaning, security, and property maintenance services; debt collection; personal loan; life/non-life insurance agency; online ticket system and payment services; digital lending; and sells information security and office disaster prevention related services, etc. The company was formerly known as Seibu Credit Co., Ltd. and changed its name to Credit Saison Co., Ltd. in October 1989. Credit Saison Co., Ltd. was incorporated in 1951 and is headquartered in Tokyo, Japan.