NU (NYSE:NU) & Bankinter (OTCMKTS:BKNIY) Financial Analysis

NU (NYSE:NUGet Free Report) and Bankinter (OTCMKTS:BKNIYGet Free Report) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Institutional and Insider Ownership

84.0% of NU shares are owned by institutional investors. 1.2% of NU shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

NU has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Bankinter has a beta of -0.16, suggesting that its stock price is 116% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for NU and Bankinter, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NU 1 4 10 0 2.60
Bankinter 1 3 1 0 2.00

NU presently has a consensus target price of $17.24, indicating a potential upside of 21.37%. Given NU’s stronger consensus rating and higher probable upside, equities research analysts plainly believe NU is more favorable than Bankinter.

Profitability

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

Net Margins Return on Equity Return on Assets
NU 18.20% 30.91% 4.80%
Bankinter 23.50% 17.69% 0.86%

Valuation & Earnings

This table compares NU and Bankinter”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NU $15.77 billion 4.37 $2.87 billion $0.65 21.86
Bankinter $5.27 billion 3.04 $1.23 billion $1.40 12.73

NU has higher revenue and earnings than Bankinter. Bankinter 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 Bankinter on 12 of the 14 factors compared between the two stocks.

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.

About Bankinter

(Get Free Report)

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.

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