NU (NYSE:NU – Get Free Report) and Commerce Bancshares (NASDAQ:CBSH – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.
Institutional and Insider Ownership
84.0% of NU shares are owned by institutional investors. Comparatively, 70.3% of Commerce Bancshares shares are owned by institutional investors. 1.2% of NU shares are owned by insiders. Comparatively, 1.8% of Commerce Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for NU and Commerce Bancshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NU | 1 | 5 | 8 | 0 | 2.50 |
| Commerce Bancshares | 0 | 7 | 3 | 0 | 2.30 |
Profitability
This table compares NU and Commerce Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NU | 18.65% | 31.59% | 4.97% |
| Commerce Bancshares | 26.07% | 14.31% | 1.71% |
Earnings & Valuation
This table compares NU and Commerce Bancshares”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NU | $15.77 billion | 4.25 | $2.87 billion | $0.74 | 18.65 |
| Commerce Bancshares | $2.14 billion | 3.85 | $566.25 million | $4.13 | 13.87 |
NU has higher revenue and earnings than Commerce Bancshares. Commerce Bancshares is trading at a lower price-to-earnings ratio than NU, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
NU has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Commerce Bancshares has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Summary
NU beats Commerce Bancshares on 11 of the 14 factors compared between the two stocks.
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.
About Commerce Bancshares
Commerce Bancshares, Inc. operates as the bank holding company for Commerce Bank that provides retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses in the United States. It operates through three segments: Consumer, Commercial, and Wealth. The Consumer segment offers various banking products and services, including consumer deposits; consumer loans, such as automobile, motorcycle, marine, tractor/trailer, recreational vehicle, fixed rate and revolving home equity, and other consumer loans; patient health care financing; real estate loans; indirect and other consumer financing; retail branch network; personal mortgage banking; consumer installment lending; and consumer debit and credit bank cards. The Commercial segment provides corporate lending, leasing, international, merchant and commercial bank card, and securities safekeeping and bond accounting services; and business products, government deposits, and related commercial cash management services, as well as sells fixed income securities to correspondent banks, corporations, public institutions, municipalities, and individuals. The Wealth segment provides traditional trust and estate planning, advisory and discretionary investment portfolio management, and brokerage services, as well as private banking accounts. The company also offers private equity investment, securities brokerage, insurance agency, specialty lending, and leasing services, as well as online and mobile banking services. Commerce Bancshares, Inc. was founded in 1865 and is headquartered in Kansas City, Missouri.
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