Critical Survey: Bank of N.T. Butterfield & Son (NYSE:NTB) vs. Inter & Co, Inc. (NASDAQ:INTR)

Bank of N.T. Butterfield & Son (NYSE:NTB) and Inter & Co, Inc. (NASDAQ:INTR) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Earnings and Valuation

This table compares Bank of N.T. Butterfield & Son and Inter & Co, Inc.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of N.T. Butterfield & Son	$587.36 million	3.30	$216.30 million	$4.82	8.46
Inter & Co, Inc.	$6.40 billion	0.46	$168.18 million	$0.39	17.31

Bank of N.T. Butterfield & Son has higher earnings, but lower revenue than Inter & Co, Inc.. Bank of N.T. Butterfield & Son is trading at a lower price-to-earnings ratio than Inter & Co, Inc., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bank of N.T. Butterfield & Son and Inter & Co, Inc.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of N.T. Butterfield & Son	26.51%	21.46%	1.56%
Inter & Co, Inc.	11.74%	10.06%	1.28%

Analyst Ratings

This is a breakdown of recent recommendations for Bank of N.T. Butterfield & Son and Inter & Co, Inc., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of N.T. Butterfield & Son	0	1	2	0	2.67
Inter & Co, Inc.	1	0	4	0	2.60

Bank of N.T. Butterfield & Son presently has a consensus target price of $44.67, indicating a potential upside of 9.50%. Inter & Co, Inc. has a consensus target price of $6.78, indicating a potential upside of 0.44%. Given Bank of N.T. Butterfield & Son’s stronger consensus rating and higher possible upside, equities analysts plainly believe Bank of N.T. Butterfield & Son is more favorable than Inter & Co, Inc..

Institutional & Insider Ownership

62.7% of Bank of N.T. Butterfield & Son shares are held by institutional investors. Comparatively, 22.9% of Inter & Co, Inc. shares are held by institutional investors. 1.2% of Bank of N.T. Butterfield & Son shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Bank of N.T. Butterfield & Son pays an annual dividend of $1.76 per share and has a dividend yield of 4.3%. Inter & Co, Inc. pays an annual dividend of $0.08 per share and has a dividend yield of 1.2%. Bank of N.T. Butterfield & Son pays out 36.5% of its earnings in the form of a dividend. Inter & Co, Inc. pays out 20.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk & Volatility

Bank of N.T. Butterfield & Son has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Inter & Co, Inc. has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Summary

Bank of N.T. Butterfield & Son beats Inter & Co, Inc. on 11 of the 16 factors compared between the two stocks.

About Bank of N.T. Butterfield & Son

The Bank of N.T. Butterfield & Son Ltd. provides community banking and wealth management business. The firm operates through the following geographical segments: Bermuda, the Cayman Islands, Channel Islands and the UK, and Other. The Bermuda and Cayman segments offer retail banking and wealth management. The Channel Islands and the UK segment refers to the retail and corporate banking and wealth management. The Other segment includes operations in the jurisdictions of The Bahamas, Canada, Mauritius, Singapore and Switzerland. The company was founded in 1858 and is headquartered in Hamilton, Bermuda.

About Inter & Co, Inc.

Inter & Co., Inc. Is a holding company, which engages in the provision of financial products and services. It operates through the following segments: Banking, Securities, Insurance Brokerage, Marketplace, Asset Management, Service, and Other. The Banking segment offers checking accounts cards, deposits, loans and advances, and other services through mobile application. The Securities segment is involved in the acquisition, sale and custody of securities, the structuring and distribution of securities in the capital market, and the provision of administration services to investment funds. The Insurance Brokerage segment includes insurance products underwritten by insurance companies, such as warranties, life, property and automobile insurance, and pension products, as well as consortium products provided by a third party. The Marketplace segment operates a digital platform, which offers goods and services to its customers. The Asset Management segment is composed of the operations related to the management of fund portfolios and other assets. The Service segment consists of collection and management of personal information, development and licensing of customized computer programs, development and licensing of non-customized computer programs and technical support, maintenance, and other information technology services. The company was founded on January 26, 2021 and is headquartered in Belo Horizonte, Brazil.