ABN AMRO Bank (OTCMKTS:AAVMY) & Westpac Banking (OTCMKTS:WEBNF) Head-To-Head Survey

Westpac Banking (OTCMKTS:WEBNF – Get Free Report) and ABN AMRO Bank (OTCMKTS:AAVMY – Get Free Report) are both financial services companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Valuation & Earnings

This table compares Westpac Banking and ABN AMRO Bank”s revenue, earnings per share and valuation.

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Westpac Banking is trading at a lower price-to-earnings ratio than ABN AMRO Bank, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

13.9% of Westpac Banking shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Westpac Banking pays an annual dividend of C$1.78 per share and has a dividend yield of 7.2%. ABN AMRO Bank pays an annual dividend of $1.84 per share and has a dividend yield of 4.2%. Westpac Banking pays out 74.6% of its earnings in the form of a dividend. ABN AMRO Bank pays out 62.4% 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.

Analyst Ratings

This is a summary of current ratings and target prices for Westpac Banking and ABN AMRO Bank, as reported by MarketBeat.

Profitability

This table compares Westpac Banking and ABN AMRO Bank’s net margins, return on equity and return on assets.

Summary

ABN AMRO Bank beats Westpac Banking on 6 of the 8 factors compared between the two stocks.

About Westpac Banking

(Get Free Report)

Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, and internationally. The company operates through Consumer, Business, Consumer and Business Banking, Westpac Institutional Bank, Specialist Businesses, and Westpac New Zealand segments. It offers savings, term deposit, business transaction, not-for-profit transaction, foreign currency, farm management deposit, project and retention trust, and statutory trust accounts; home, personal, business, and commercial loans; car and equipment finance; business overdrafts and bank guarantees; debit and credit cards; international and travel services; share trading services; investment products; and home, car, travel, life, caravan and trailer, credit card and loan repayment, boat, and business insurance products. In addition, the company provides corporate and institutional, transaction banking, financial market, corporate and structured finance, trade and supply chain financing, and industry specific banking and treasury services, as well as online banking services. It serves individuals; small, and medium enterprises; commercial and agribusiness; and private wealth clients; and corporate, institutional, and government customers. The company was formerly known as Bank of New South Wales and changed its name to Westpac Banking Corporation in October 1982. Westpac Banking Corporation was founded in 1817 and is based in Sydney, Australia.

About ABN AMRO Bank

(Get Free Report)

ABN AMRO Bank N.V. provides various banking products and financial services to retail, private, and business clients in the Netherlands and internationally. It operates through three segments: Personal & Business Banking, Wealth Management, and Corporate Banking. The company provides savings and deposits products; investment and insurance products; and consumer, personal, car, and home improvement loan. It also issues, promotes, manages, and processes credit cards; trade finance, international payments, and treasury management; corporate finance and equity capital market; and revolving credit card facilities and pension schemes, as well as consumer credit and mortgages; and life and non-life insurance products. In addition, it offers asset-based solutions, including working capital solutions, equipment leases and loans, and vendor lease services; private banking and wealth-management-related services; and derivatives and equity clearing services. The company was incorporated in 2009 and is headquartered in Amsterdam, the Netherlands. ABN AMRO Bank N.V. operates as a subsidiary of Stichting Administratiekantoor Continuïteit Abn Amro Bank.

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