Contrasting Intercorp Financial Services (NYSE:IFS) & Oversea-Chinese Banking (OTCMKTS:OVCHY)

Intercorp Financial Services (NYSE:IFS) and Oversea-Chinese Banking (OTCMKTS:OVCHY) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Profitability

This table compares Intercorp Financial Services and Oversea-Chinese Banking’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intercorp Financial Services 8.64% 16.98% 1.84%
Oversea-Chinese Banking N/A N/A N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Intercorp Financial Services and Oversea-Chinese Banking, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intercorp Financial Services 0 4 1 0 2.20
Oversea-Chinese Banking 0 1 1 0 2.50

Intercorp Financial Services presently has a consensus target price of $31.50, suggesting a potential downside of 5.72%. Given Intercorp Financial Services’ higher probable upside, analysts plainly believe Intercorp Financial Services is more favorable than Oversea-Chinese Banking.

Institutional & Insider Ownership

6.6% of Intercorp Financial Services shares are owned by institutional investors. Comparatively, 0.0% of Oversea-Chinese Banking 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.

Earnings and Valuation

This table compares Intercorp Financial Services and Oversea-Chinese Banking’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intercorp Financial Services $1.39 billion 2.75 $431.95 million $3.91 8.54
Oversea-Chinese Banking $12.20 billion 2.88 $3.57 billion $1.64 9.57

Oversea-Chinese Banking has higher revenue and earnings than Intercorp Financial Services. Intercorp Financial Services is trading at a lower price-to-earnings ratio than Oversea-Chinese Banking, indicating that it is currently the more affordable of the two stocks.

Summary

Intercorp Financial Services beats Oversea-Chinese Banking on 7 of the 11 factors compared between the two stocks.

About Intercorp Financial Services

Intercorp Financial Services Inc. provides financial products and services in Peru. It provides transactional accounts, such as cuenta sueldo and cuenta simple; savings accounts; investment accounts; and time deposits, certificates of deposit, and compensation for service time accounts. The company also offers retail banking, including consumer; payroll deduction; cash, vehicle, student, express, collateralized cash, and other consumer loans; and mortgage loans, as well as credit cards. In addition, it provides corporate, medium-size business, and small business banking services; and commercial banking products, which include commercial real estate, vehicles, machinery and other goods, cash management, trade finance, and electronic factoring products. Further, it offers treasury and institutional banking, as well as securitization services. As of December 31, 2019, the company operated 256 financial stores and 1,603 ATMs. Intercorp Financial Services Inc. was founded in 1897 and is based in Lima, Peru. Intercorp Financial Services Inc. is a subsidiary of Intercorp Perú Ltd.

About Oversea-Chinese Banking

Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high net worth individuals. Its Global Corporate/Investment Banking segment provides project financing, overdrafts, trade financing, and deposit accounts; fee-based services, such as cash management and custodian services; investment banking services, including financing solutions, syndicated loans and advisory services, corporate finance services for initial public offerings, secondary fund-raising, and takeovers and mergers; and customized and structured equity-linked financing services. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Treasury and Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as provision of structured treasury products and financial solutions. Its OCBC Wing Hang segment offers commercial banking, consumer financing, share brokerage, and insurance services. The company's Insurance segment provides fund management services, and life and general insurance products. Its Others segment is involved in property and investment holding activities. The company has approximately 540 branches and representative offices in 19 countries and regions. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

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