Commonwealth Bank of Australia (OTCMKTS:CMWAY) versus Bankinter (OTCMKTS:BKNIY) Critical Contrast

Commonwealth Bank of Australia (OTCMKTS:CMWAY) and Bankinter (OTCMKTS:BKNIY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Volatility & Risk

Commonwealth Bank of Australia has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Bankinter has a beta of -0.2, meaning that its share price is 120% less volatile than the S&P 500.

Profitability

This table compares Commonwealth Bank of Australia and Bankinter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commonwealth Bank of Australia	N/A	N/A	N/A
Bankinter	21.53%	16.76%	0.81%

Earnings & Valuation

This table compares Commonwealth Bank of Australia and Bankinter”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commonwealth Bank of Australia	$61.51 billion	2.81	$6.55 billion	N/A	N/A
Bankinter	$5.44 billion	N/A	$1.03 billion	$1.26	13.04

Commonwealth Bank of Australia has higher revenue and earnings than Bankinter.

Analyst Ratings

This is a summary of current recommendations for Commonwealth Bank of Australia and Bankinter, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commonwealth Bank of Australia	1	1	0	0	1.50
Bankinter	1	5	0	1	2.14

Commonwealth Bank of Australia presently has a consensus target price of $130.18, suggesting a potential upside of 25.94%. Given Commonwealth Bank of Australia’s higher probable upside, equities research analysts clearly believe Commonwealth Bank of Australia is more favorable than Bankinter.

Dividends

Commonwealth Bank of Australia pays an annual dividend of $3.36 per share and has a dividend yield of 3.3%. Bankinter pays an annual dividend of $0.47 per share and has a dividend yield of 2.9%. Bankinter pays out 37.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

0.0% of Commonwealth Bank of Australia shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Commonwealth Bank of Australia beats Bankinter on 7 of the 12 factors compared between the two stocks.

About Commonwealth Bank of Australia

Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers transaction, savings, and foreign currency accounts; term deposits; personal and business loans; overdrafts; equipment finance; credit cards; international payment and trade; and private banking services, as well as home and car loans. It also provides institutional banking services; funds management, superannuation, and share broking products and services; home, car, health, life, income protection, and travel insurance products, as well as retail, premium, business, offshore services. In addition, the company offers advisory services for high-net-worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and international and foreign exchange services. Commonwealth Bank of Australia was founded in 1911 and is based in Sydney, Australia.

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.