Credicorp (NYSE:BAP – Get Free Report) and Wells Fargo & Company (NYSE:WFC – Get Free Report) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Profitability
This table compares Credicorp and Wells Fargo & Company’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Credicorp | 25.04% | 20.52% | 2.87% |
| Wells Fargo & Company | 17.55% | 13.85% | 1.06% |
Valuation & Earnings
This table compares Credicorp and Wells Fargo & Company”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Credicorp | $8.01 billion | 4.43 | $1.94 billion | $26.99 | 13.93 |
| Wells Fargo & Company | $87.05 billion | 3.08 | $21.34 billion | $6.88 | 12.89 |
Wells Fargo & Company has higher revenue and earnings than Credicorp. Wells Fargo & Company is trading at a lower price-to-earnings ratio than Credicorp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for Credicorp and Wells Fargo & Company, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Credicorp | 0 | 3 | 4 | 0 | 2.57 |
| Wells Fargo & Company | 0 | 10 | 14 | 2 | 2.69 |
Credicorp currently has a consensus target price of $418.40, suggesting a potential upside of 11.30%. Wells Fargo & Company has a consensus target price of $98.61, suggesting a potential upside of 11.20%. Given Credicorp’s higher possible upside, research analysts clearly believe Credicorp is more favorable than Wells Fargo & Company.
Volatility & Risk
Credicorp has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Wells Fargo & Company has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.
Dividends
Credicorp pays an annual dividend of $14.48 per share and has a dividend yield of 3.9%. Wells Fargo & Company pays an annual dividend of $2.00 per share and has a dividend yield of 2.3%. Credicorp pays out 53.6% of its earnings in the form of a dividend. Wells Fargo & Company pays out 29.1% 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. Credicorp has raised its dividend for 3 consecutive years and Wells Fargo & Company has raised its dividend for 4 consecutive years.
Insider and Institutional Ownership
89.8% of Credicorp shares are held by institutional investors. Comparatively, 75.9% of Wells Fargo & Company shares are held by institutional investors. 15.9% of Credicorp shares are held by insiders. Comparatively, 0.1% of Wells Fargo & Company shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Credicorp beats Wells Fargo & Company on 10 of the 18 factors compared between the two stocks.
About Credicorp
Credicorp Ltd. provides various financial, insurance, and health services and products primarily in Peru and internationally. It operates through Universal Banking, Insurance and Pensions, Microfinance, and Investment Banking and Equity Management segments. The Universal Banking segment grants various credits and financial instruments to individuals and legal entities; and various deposits and current accounts. The Insurance and Pensions segment issues insurance policies to cover losses in commercial property, transport, marine vessels, automobiles, life, health, and pensions; and management services for private pension funds. The Microfinance segment provides management of loans, deposits, and current accounts for small and microenterprises. The Investment Banking and Equity Management segment is involved in provision of brokerage and investment management services for corporations, institutional investors, governments, and foundations; structuring and placement of issues in the primary market; execution and negotiation of transactions in the secondary market; and structuring of securitization processes for corporate customers and manages mutual funds. The company was founded in 1889 and is headquartered in Lima, Peru.
About Wells Fargo & Company
Wells Fargo & Co. is a diversified and community-based financial services company, which engages in the provision of banking, insurance, investments, mortgage, and consumer and commercial finance products and services. It operates through the following segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. The Consumer Banking and Lending segment offers consumer and small business banking, home lending, credit cards, auto, and personal lending. The Commercial Banking segment provides banking and credit products across industry sectors and municipalities, secured lending and lease products, and treasury management. The Corporate and Investment Banking segment is composed of corporate banking, investment banking, treasury management, commercial real estate lending and servicing, and equity and fixed income solutions, as well as sales, trading, and research capabilities. The Wealth and Investment Management segment refers to personalized wealth management, brokerage, financial planning, lending, private banking, trust, and fiduciary products and services. The company was founded by Henry Wells and William G. Fargo on March 18, 1852 and is headquartered in San Francisco, CA.
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