Bankinter (OTCMKTS:BKNIY – Get Free Report) and NU (NYSE:NU – Get Free Report) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.
Profitability
This table compares Bankinter and NU’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bankinter | 23.50% | 17.69% | 0.86% |
| NU | 18.20% | 30.91% | 4.80% |
Valuation and Earnings
This table compares Bankinter and NU”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bankinter | $5.27 billion | 3.02 | $1.23 billion | $1.40 | 12.67 |
| NU | $11.91 billion | 5.54 | $2.87 billion | $0.65 | 20.93 |
NU has higher revenue and earnings than Bankinter. Bankinter is trading at a lower price-to-earnings ratio than NU, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Bankinter and NU, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bankinter | 1 | 3 | 1 | 0 | 2.00 |
| NU | 1 | 4 | 10 | 0 | 2.60 |
NU has a consensus price target of $17.24, suggesting a potential upside of 26.74%. Given NU’s stronger consensus rating and higher possible upside, analysts plainly believe NU is more favorable than Bankinter.
Insider and Institutional Ownership
84.0% of NU shares are held by institutional investors. 1.2% of NU shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Bankinter has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, NU has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
Dividends
Bankinter pays an annual dividend of $0.44 per share and has a dividend yield of 2.5%. NU pays an annual dividend of $1.67 per share and has a dividend yield of 12.3%. Bankinter pays out 31.4% of its earnings in the form of a dividend. NU pays out 256.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
NU beats Bankinter on 13 of the 16 factors compared between the two stocks.
About Bankinter
Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.
About NU
Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.
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