NU (NYSE:NU) vs. Chiba Bank (OTCMKTS:CHBAY) Head to Head Review

Chiba Bank (OTCMKTS:CHBAY) and NU (NYSE:NU) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

84.0% of NU shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Chiba Bank and NU’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chiba Bank	20.92%	7.53%	0.42%
NU	18.19%	30.68%	4.72%

Volatility and Risk

Chiba Bank has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, NU has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Chiba Bank and NU, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chiba Bank	0	0	0	0	0.00
NU	0	2	11	1	2.93

NU has a consensus price target of $18.34, suggesting a potential upside of 22.39%. Given NU’s stronger consensus rating and higher possible upside, analysts plainly believe NU is more favorable than Chiba Bank.

Earnings & Valuation

This table compares Chiba Bank and NU”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chiba Bank	$2.38 billion	3.73	$490.11 million	$4.20	13.10
NU	$15.77 billion	4.58	$2.87 billion	$0.58	25.84

NU has higher revenue and earnings than Chiba Bank. Chiba Bank is trading at a lower price-to-earnings ratio than NU, indicating that it is currently the more affordable of the two stocks.

Summary

NU beats Chiba Bank on 12 of the 14 factors compared between the two stocks.

About Chiba Bank

The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.

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.