Westpac Banking Corporation (NYSE: WBK) and OFG Bancorp (NYSE:OFG) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Insider and Institutional Ownership

0.6% of Westpac Banking Corporation shares are owned by institutional investors. Comparatively, 97.0% of OFG Bancorp shares are owned by institutional investors. 2.6% of OFG Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Westpac Banking Corporation pays an annual dividend of $1.38 per share and has a dividend yield of 5.4%. OFG Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 2.9%. OFG Bancorp pays out 22.0% of its earnings in the form of a dividend. OFG Bancorp has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Westpac Banking Corporation and OFG Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westpac Banking Corporation 0 2 3 0 2.60
OFG Bancorp 0 2 0 0 2.00

OFG Bancorp has a consensus price target of $12.75, suggesting a potential upside of 52.69%. Given OFG Bancorp’s higher possible upside, analysts plainly believe OFG Bancorp is more favorable than Westpac Banking Corporation.

Valuation and Earnings

This table compares Westpac Banking Corporation and OFG Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Westpac Banking Corporation $16.36 billion 5.23 N/A N/A N/A
OFG Bancorp $301.09 million 1.22 $47.90 million $1.09 7.66

OFG Bancorp has higher revenue, but lower earnings than Westpac Banking Corporation.

Profitability

This table compares Westpac Banking Corporation and OFG Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Westpac Banking Corporation N/A N/A N/A
OFG Bancorp 14.58% 8.36% 0.98%

Risk & Volatility

Westpac Banking Corporation has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Summary

OFG Bancorp beats Westpac Banking Corporation on 8 of the 14 factors compared between the two stocks.

Westpac Banking Corporation Company Profile

Westpac Banking Corporation is a banking organization. The Company provides a range of banking and financial services in markets, including consumer, business and institutional banking and wealth management services. The Company is engaged in the provision of financial services, including lending, deposit taking, payments services, investment portfolio management and advice, superannuation and funds management, insurance services, leasing finance, general finance, interest rate risk management and foreign exchange services. The Company’s segments include Consumer Bank, Business Bank, BT Financial Group (BTFG), Westpac Institutional Bank (WIB) and Westpac New Zealand. The Company has branches throughout Australia, New Zealand, Asia and in the Pacific region. The Company through its division offers its services under various brands, such as Westpac, St.George, BankSA, Bank of Melbourne and RAMS brands.

OFG Bancorp Company Profile

OFG Bancorp is a financial holding company. The Company is engaged in providing banking and financial services through its subsidiaries. The Company operates through three segments: Banking, Wealth Management and Treasury. The Company provides banking and financial services to its clients through a range of banking and financial solutions, including commercial, consumer, auto, and mortgage lending; checking and savings accounts; financial planning, insurance, financial service, and investment brokerage, and corporate and individual trust and retirement services. The Company provides these services through various subsidiaries, including a commercial bank, Oriental Bank; a securities broker-dealer, Oriental Financial Services Corp. (Oriental Financial Services); an insurance agency, Oriental Insurance, LLC (Oriental Insurance), and a retirement plan administrator, Oriental Pension Consultants, Inc. (OPC).

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