National Australia Bank (OTCMKTS:NABZY – Get Rating) and Hope Bancorp (NASDAQ:HOPE – Get Rating) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.
Risk and Volatility
National Australia Bank has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Hope Bancorp has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.
This table compares National Australia Bank and Hope Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Australia Bank||N/A||N/A||N/A|
Institutional & Insider Ownership
83.9% of Hope Bancorp shares are held by institutional investors. 5.3% of Hope Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares National Australia Bank and Hope Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National Australia Bank||$18.94 billion||4.03||$1.74 billion||N/A||N/A|
|Hope Bancorp||$610.13 million||2.92||$204.57 million||$1.81||8.19|
National Australia Bank has higher revenue and earnings than Hope Bancorp.
This is a summary of recent ratings and target prices for National Australia Bank and Hope Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Australia Bank||0||2||0||0||2.00|
Hope Bancorp has a consensus price target of $18.00, indicating a potential upside of 21.38%. Given Hope Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Hope Bancorp is more favorable than National Australia Bank.
National Australia Bank pays an annual dividend of $0.46 per share and has a dividend yield of 3.9%. Hope Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Hope Bancorp pays out 30.9% of its earnings in the form of a dividend.
Hope Bancorp beats National Australia Bank on 9 of the 14 factors compared between the two stocks.
About National Australia Bank (Get Rating)
National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. It operates through Business and Private Banking, Personal Banking, Corporate and Institutional Banking, and New Zealand Banking segments. It operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. The company accepts transaction accounts, savings accounts, deposit accounts, and term deposits; and specialized accounts, such as foreign currency, business interest, statutory trust, community free saver, farm management, and project bank accounts, as well as farm management deposits. National Australia Bank Limited also provides home loans; personal loans; business loans; vehicle and equipment finance; and trade and invoice finance, as well as business overdrafts and bank guarantees. In addition, the company offers insurance products consisting of car, home and content, landlord, travel, caravan and trailer, life, and business insurance products; and pension, superannuation, self-managed super funds, cash management, and financial planning and advisory services. Further, it provides investment products; credit, debit, and business cards; payments and merchant services; travel services; online and internet banking services; small business services; international and foreign exchange solutions; and industry specific banking services. National Australia Bank Limited was founded in 1834 and is based in Melbourne, Australia.
About Hope Bancorp (Get Rating)
Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides banking services for small and medium-sized businesses, and individuals in the United States. The company accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. Its loan products include commercial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, and other business related financing needs; real estate loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, auto, credit card, and personal loans. The company also offers trade finance services, including the issuance and negotiation of letters of credit, as well as handles documentary collections; warehouse lines of credit to mortgage loan originators; and commercial equipment lease financing. In addition, it provides cash management services, such as remote deposit capture, lock box, and ACH origination services; investment and wealth management services; mobile banking services; debit card services; foreign exchanges services, safe deposit boxes, and other customary bank services; internet banking services; and automated teller machine services. As of December 31, 2021, the company operated 47 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, and Alabama; SBA loan production offices in Atlanta, Houston, Dallas, Denver, Portland, Seattle, Fremont, and Southern California; and a representative office in Seoul, Korea. Hope Bancorp, Inc. was incorporated in 2000 and is headquartered in Los Angeles, California.
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