Analyzing National Australia Bank (OTCMKTS:NABZY) and Bancorp (TBBK)

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Bancorp (NASDAQ:TBBK) and National Australia Bank (OTCMKTS:NABZY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Bancorp and National Australia Bank, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bancorp 0 1 0 0 2.00
National Australia Bank 0 0 2 0 3.00

Profitability

This table compares Bancorp and National Australia Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bancorp 23.24% 11.26% 0.92%
National Australia Bank N/A N/A N/A

Earnings and Valuation

This table compares Bancorp and National Australia Bank’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bancorp $213.56 million 2.24 $88.68 million $0.69 12.29
National Australia Bank $24.96 billion 1.87 $4.06 billion $0.78 11.19

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

Dividends

National Australia Bank pays an annual dividend of $0.69 per share and has a dividend yield of 7.9%. Bancorp does not pay a dividend. National Australia Bank pays out 88.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

80.1% of Bancorp shares are owned by institutional investors. Comparatively, 0.1% of National Australia Bank shares are owned by institutional investors. 11.1% of Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Bancorp has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, National Australia Bank has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Summary

Bancorp beats National Australia Bank on 9 of the 15 factors compared between the two stocks.

About Bancorp

The Bancorp, Inc. operates as the financial holding company for The Bancorp Bank that provides banking products and services in the United States. The company offers a range of deposit products and services, including checking accounts, savings accounts, money market accounts, commercial accounts, and retirement accounts. It also provides securities backed lines of credit, vehicle fleet and other equipment leasing, small business administration loans, and commercial mortgage backed securities, as well as prepaid and debit cards. In addition, it offers private label banking; credit and debit card payment processing for independent service organizations; institutional banking; and Internet banking services. The Bancorp, Inc. was founded in 1999 and is based in Wilmington, Delaware.

About National Australia Bank

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, Asia, the United States, and the United Kingdom. It operates through Consumer Banking and Wealth, Business and Private Banking, Corporate and Institutional Banking, and New Zealand Banking segments. The company accepts transaction accounts, savings accounts, term deposits, and deposit accounts; and specialized accounts, such as foreign currency, business interest, statutory trust, community free saver, and farm management accounts. It also provides home loans; personal loans; agribusiness loans; business market and option loans; agribusiness loans; equipment and vehicle loans; debtor, invoice, and trade finance; and documentary trade, as well as business overdrafts and bank guarantees. In addition, the company offers insurance products consisting of car, home and content, landlord, travel, life, and injury insurance products; and pension, superannuation, self-managed super funds, and financial planning and advisory services. Further, it provides investment products; credit, debit, and business cards; payments and merchant services; travel services; online banking services; small business services; and international and foreign exchange solutions. As of September 30, 2017, the company operated through a network of 719 branches and business banking centers, and 2,695 ATMs. National Australia Bank Limited was founded in 1834 and is based in Docklands, Australia.

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