Contrasting Akbank Turk Anonim Sirketi (OTCMKTS:AKBTY) & NU (NYSE:NU)

Akbank Turk Anonim Sirketi (OTCMKTS:AKBTYGet Free Report) and NU (NYSE:NUGet Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Valuation & Earnings

This table compares Akbank Turk Anonim Sirketi and NU”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Akbank Turk Anonim Sirketi $19.70 billion 0.43 $1.45 billion $0.58 5.60
NU $15.77 billion 4.07 $2.87 billion $0.65 20.35

NU has lower revenue, but higher earnings than Akbank Turk Anonim Sirketi. Akbank Turk Anonim Sirketi is trading at a lower price-to-earnings ratio than NU, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Akbank Turk Anonim Sirketi and NU, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Akbank Turk Anonim Sirketi 0 0 0 0 0.00
NU 1 4 9 0 2.57

NU has a consensus price target of $17.08, indicating a potential upside of 29.16%. Given NU’s stronger consensus rating and higher probable upside, analysts plainly believe NU is more favorable than Akbank Turk Anonim Sirketi.

Risk & Volatility

Akbank Turk Anonim Sirketi has a beta of 0.63, meaning that its stock price is 37% 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.

Profitability

This table compares Akbank Turk Anonim Sirketi and NU’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Akbank Turk Anonim Sirketi 7.87% 21.12% 1.83%
NU 18.20% 30.91% 4.80%

Institutional and Insider Ownership

84.0% of NU shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

NU beats Akbank Turk Anonim Sirketi on 12 of the 13 factors compared between the two stocks.

About Akbank Turk Anonim Sirketi

(Get Free Report)

Akbank T.A.S., together with its subsidiaries, provides various banking products and services in Turkey and internationally. It operates through Consumer Banking and Private Banking; Commercial Banking, Corporate Banking, and SME Banking; and Treasury, Other, and Unallovated segments. The company’s consumer banking services comprise deposit accounts, retail loans, commercial installment loans, credit cards, insurance products, and asset management services, as well as bank cards, investment funds trading, automatic payment, foreign currency trading, safe deposit box rental, cheques, money transfer, investment banking, and telephone and internet banking. It also offers services to large, medium, and small size corporate and commercial customers that include Turkish Lira (TL) and foreign currency denominated working capital loans financing for investments, foreign trade financing, derivative instruments for hedging purposes of foreign currency and interest risk, letters of credit, foreign currency trading, corporate finance, and deposit and cash management services, as well as project finance loans; and working capital management, delivering cash management services based on customers’ requests, such as collection and payment services, and liquidity and information management. In addition, the company engages in treasury activities consisting of TL and foreign currency spot and forward transactions, treasury and government bonds, Eurobonds, and private sector bond transactions, as well as derivative trading activities; and marketing and pricing activities related to treasury products. Further, it provides financial leasing services, investment and pension funds management, and portfolio management, as well as offers payment services and issues electronic money. Akbank T.A.S. was incorporated in 1948 and is headquartered in Istanbul, Turkey.

About NU

(Get Free Report)

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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