Cullen/Frost Bankers (NYSE:CFR) and Standard Chartered (OTCMKTS:SCBFF) Head to Head Review

Cullen/Frost Bankers (NYSE:CFRGet Rating) and Standard Chartered (OTCMKTS:SCBFFGet Rating) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cullen/Frost Bankers and Standard Chartered, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cullen/Frost Bankers 2 4 4 0 2.20
Standard Chartered 0 1 2 0 2.67

Cullen/Frost Bankers presently has a consensus target price of $139.60, suggesting a potential upside of 18.07%. Given Cullen/Frost Bankers’ higher probable upside, analysts clearly believe Cullen/Frost Bankers is more favorable than Standard Chartered.

Dividends

Cullen/Frost Bankers pays an annual dividend of $3.00 per share and has a dividend yield of 2.5%. Standard Chartered pays an annual dividend of $0.18 per share and has a dividend yield of 2.3%. Cullen/Frost Bankers pays out 46.2% of its earnings in the form of a dividend. Cullen/Frost Bankers has increased its dividend for 29 consecutive years. Cullen/Frost Bankers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Cullen/Frost Bankers has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Standard Chartered has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership

81.7% of Cullen/Frost Bankers shares are held by institutional investors. 3.8% of Cullen/Frost Bankers 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.

Profitability

This table compares Cullen/Frost Bankers and Standard Chartered’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cullen/Frost Bankers 30.15% 10.40% 0.87%
Standard Chartered N/A N/A N/A

Earnings & Valuation

This table compares Cullen/Frost Bankers and Standard Chartered’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cullen/Frost Bankers $1.40 billion 5.43 $443.08 million $6.50 18.19
Standard Chartered $18.15 billion 1.37 $2.32 billion N/A N/A

Standard Chartered has higher revenue and earnings than Cullen/Frost Bankers.

Summary

Cullen/Frost Bankers beats Standard Chartered on 11 of the 15 factors compared between the two stocks.

About Cullen/Frost Bankers (Get Rating)

Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that offers commercial and consumer banking services in Texas. It operates in two segments, Banking and Frost Wealth Advisors. The company offers commercial banking services to corporations and other business clients, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; commercial leasing; and treasury management services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds, and foreign exchange services. Further, it acts as a correspondent for approximately 171 financial institutions; offers trust, investment, agency, and custodial services for individual and corporate clients; provides capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and supports international business activities. Additionally, the company offers insurance and securities brokerage services; and holds securities for investment purposes, as well as investment management services to Frost-managed mutual funds, institutions, and individuals. It operates approximately 157 financial centers and 1,650 ATMs. The company serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. Cullen/Frost Bankers, Inc. was founded in 1868 and is headquartered in San Antonio, Texas.

About Standard Chartered (Get Rating)

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services primarily in Asia, Africa, Europe, the Americas, and the Middle East. The company operates through two segments: Corporate, Commercial and Institutional Banking; and Consumer, Private and Business Banking. It offers retail products, such as deposits, savings, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advices; and transaction banking services, such as cash management, working capital, and trade financing products. The company also provides financial markets products and services that comprise project and transportation financing, debt capital markets and leveraged financing, financing and securities services, and sales and structuring services, as well as macro, commodities, and credit trading services. In addition, it offers digital banking solutions. The company serves financial institutions, governments, banks, investors, corporations, small businesses, and individuals. It operates through approximately 776 branches. The company was founded in 1853 and is headquartered in London, the United Kingdom.

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