UniCredit (OTCMKTS:UNCRY) versus Royal Bank Of Canada (NYSE:RY) Head to Head Review

Royal Bank Of Canada (NYSE:RY) and UniCredit (OTCMKTS:UNCRY) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Dividends

Royal Bank Of Canada pays an annual dividend of $4.53 per share and has a dividend yield of 3.1%. UniCredit pays an annual dividend of $0.55 per share and has a dividend yield of 1.5%. Royal Bank Of Canada pays out 47.8% of its earnings in the form of a dividend. Royal Bank Of Canada has increased its dividend for 15 consecutive years. Royal Bank Of Canada is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Royal Bank Of Canada and UniCredit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Bank Of Canada	14.03%	16.12%	0.89%
UniCredit	N/A	N/A	N/A

Valuation & Earnings

This table compares Royal Bank Of Canada and UniCredit”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Bank Of Canada	$98.71 billion	2.09	$11.92 billion	$9.47	15.52
UniCredit	$48.38 billion	2.41	$10.52 billion	N/A	N/A

Royal Bank Of Canada has higher revenue and earnings than UniCredit.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Royal Bank Of Canada and UniCredit, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Bank Of Canada	0	6	6	0	2.50
UniCredit	0	2	0	3	3.20

Royal Bank Of Canada presently has a consensus target price of $177.50, suggesting a potential upside of 20.79%. Given Royal Bank Of Canada’s higher probable upside, equities analysts plainly believe Royal Bank Of Canada is more favorable than UniCredit.

Volatility & Risk

Royal Bank Of Canada has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, UniCredit has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

45.3% of Royal Bank Of Canada shares are owned by institutional investors. Comparatively, 0.3% of UniCredit shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Royal Bank Of Canada beats UniCredit on 10 of the 15 factors compared between the two stocks.

About Royal Bank Of Canada

Royal Bank of Canada operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses. This segment offers financial products and services through branches, automated teller machines, and mobile sales network. Its Wealth Management segment provides a suite of wealth, investment, trust, banking, credit, and other advice-based solutions and strategies to high net worth and ultra-high net worth individuals, and institutional clients; asset management products to institutional and individual clients; and asset and investor services to financial institutions, asset managers, and asset owners. The company's Insurance segment offers life, health, home, auto, travel, wealth, annuities, property and casualty, and reinsurance advice and solutions; and business insurance services to individual, business, and group clients through its advice centers, RBC insurance stores, and mobile advisors; digital platforms; and independent brokers and partners. The company's Capital Markets segment offers advisory and origination, sales and trading, lending and financing, and transaction banking services to corporations, institutional clients, asset managers, private equity firms, and governments. The company was founded in 1864 and is headquartered in Toronto, Canada.

About UniCredit

UniCredit S.p.A. provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. It offers retail, private, and wealth management solutions; and institutional investor solutions. The company also provides corporate finance advisory, rating advisory, financial sponsor, patient capital, capital structure advisory, and finance solutions, as well as securities services. In addition, it offers transactional and risk management, and strategic advisory and funding services; group trade and correspondent banking services; and payments and cash management solutions. The company serves SME, corporate, multinational corporate, financial institution, and public sector clients, as well as retail, private banking, wealth management, and family office clients. The company was founded in 1870 and is headquartered in Milan, Italy.