HDFC Bank (NYSE:HDB) vs. PT Bank Mandiri (Persero) Tbk (OTCMKTS:PPERY) Critical Analysis

PT Bank Mandiri (Persero) Tbk (OTCMKTS:PPERY) and HDFC Bank (NYSE:HDB) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for PT Bank Mandiri (Persero) Tbk and HDFC Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT Bank Mandiri (Persero) Tbk	0	0	0	0	N/A
HDFC Bank	0	0	1	1	3.50

Valuation and Earnings

This table compares PT Bank Mandiri (Persero) Tbk and HDFC Bank’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PT Bank Mandiri (Persero) Tbk	$8.58 billion	4.04	$2.79 billion	N/A	N/A
HDFC Bank	$25.50 billion	4.18	$6.03 billion	$3.25	17.64

HDFC Bank has higher revenue and earnings than PT Bank Mandiri (Persero) Tbk.

Profitability

This table compares PT Bank Mandiri (Persero) Tbk and HDFC Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PT Bank Mandiri (Persero) Tbk	N/A	N/A	N/A
HDFC Bank	19.47%	16.81%	1.94%

Volatility & Risk

PT Bank Mandiri (Persero) Tbk has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, HDFC Bank has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of PT Bank Mandiri (Persero) Tbk shares are owned by institutional investors. Comparatively, 17.2% of HDFC Bank shares are owned by institutional investors. 0.0% of PT Bank Mandiri (Persero) Tbk shares are owned by company insiders. Comparatively, 1.0% of HDFC Bank shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

PT Bank Mandiri (Persero) Tbk pays an annual dividend of $0.52 per share and has a dividend yield of 3.5%. HDFC Bank pays an annual dividend of $0.58 per share and has a dividend yield of 1.0%. HDFC Bank pays out 17.8% of its earnings in the form of a dividend. HDFC Bank has increased its dividend for 2 consecutive years.

Summary

HDFC Bank beats PT Bank Mandiri (Persero) Tbk on 11 of the 14 factors compared between the two stocks.

About PT Bank Mandiri (Persero) Tbk

PT Bank Mandiri (Persero) Tbk provides various banking products and services to individuals and businesses in Indonesia, Singapore, Hong Kong, Timor Leste, Shanghai, Malaysia, the United Kingdom, and the Cayman Islands. It offers savings and current accounts, time deposits, demand deposits, and foreign currency savings and current accounts; motorcycle loans, mortgage loan, and housing loans, as well as loans for various purposes, such as education, home renovation, marriage, health, and other needs for individuals; and working capital loans, investment loans, people's business loans, syndicated loans, and micro business loans for businesses. The company also provides investment products comprising mutual funds, stocks, and bond trading; life, health, and general insurance products; credit, debit, and corporate cards; e-banking services; digital lending; cash management services; trade finance services, value chain, supply chain management, global and domestic trade, export and import, standby letter of credit, and bank guarantee, as well as spot and forex services; custodial services; treasury services, including cash transaction/liquidity, hedging, and investment products; trust services comprising trustee, paying agent, security agent, escrow agent, monitoring agent, and receiving bank services; and money transfer, remittance services, and venture capital financing. It operates branch offices, sub-branch offices, and overseas branch offices; and ATM facilities. The company was founded in 1998 and is headquartered in Jakarta, Indonesia.

About HDFC Bank

HDFC Bank Limited provides banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company operates in three segments: Wholesale Banking, Retail Banking, and Treasury Services. It accepts savings, salary, current, rural, public provident fund, pension, and demat accounts; fixed and recurring deposits; and safe deposit lockers, as well as offshore accounts and deposits, and overdrafts against fixed deposits. The company also provides personal, home, car, two-wheeler, business, doctor, educational, gold, consumer, and rural loans; loans against properties, securities, fixed deposits, rental receivables, and assets; loans for professionals; government sponsored programs; and loans on credit card, as well as working capital and commercial/construction equipment finance, healthcare/medical equipment and commercial vehicle finance, dealer finance, and term loans. In addition, it offers credit, debit, prepaid, and forex cards; payment and collection, export, import, remittance, bank guarantee, letter of credit, trade, hedging, and merchant and cash management services; insurance and investment products. Further, the company provides short term finance, bill discounting, structured finance, export credit, loan repayment, and documents collection services; online and wholesale, mobile, and phone banking services; unified payment interface, immediate payment, national electronic funds transfer, and real time gross settlement services; and channel financing, vendor financing, reimbursement account, money market, derivatives, employee trusts, cash surplus corporates, tax payment, and bankers to rights/public issue services, as well as financial solutions for supply chain partners and agricultural customers. It operates branches and automated teller machines in various cities/towns. The company was incorporated in 1994 and is headquartered in Mumbai, India.