Financial Analysis: Raiffeisen Bank International (RAIFY) and Its Competitors

Raiffeisen Bank International (OTCMKTS:RAIFY) is one of 85 public companies in the “BANKS – FOREIGN” industry, but how does it contrast to its rivals? We will compare Raiffeisen Bank International to similar companies based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, earnings, dividends and risk.

Dividends

Raiffeisen Bank International pays an annual dividend of $0.18 per share and has a dividend yield of 2.6%. Raiffeisen Bank International pays out 9.7% of its earnings in the form of a dividend. As a group, “BANKS – FOREIGN” companies pay a dividend yield of 3.8% and pay out 38.6% of their earnings in the form of a dividend.

Insider & Institutional Ownership

20.6% of shares of all “BANKS – FOREIGN” companies are owned by institutional investors. 5.6% of shares of all “BANKS – FOREIGN” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Raiffeisen Bank International and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Raiffeisen Bank International	$15.33 billion	$1.25 billion	3.76
Raiffeisen Bank International Competitors	$40.09 billion	$6.80 billion	10.62

Raiffeisen Bank International’s rivals have higher revenue and earnings than Raiffeisen Bank International. Raiffeisen Bank International is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Raiffeisen Bank International and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raiffeisen Bank International	0	0	0	1	4.00
Raiffeisen Bank International Competitors	1166	3599	3431	212	2.32

As a group, “BANKS – FOREIGN” companies have a potential upside of 15.44%. Given Raiffeisen Bank International’s rivals higher possible upside, analysts clearly believe Raiffeisen Bank International has less favorable growth aspects than its rivals.

Volatility and Risk

Raiffeisen Bank International has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Raiffeisen Bank International’s rivals have a beta of 0.77, suggesting that their average stock price is 23% less volatile than the S&P 500.

Profitability

This table compares Raiffeisen Bank International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raiffeisen Bank International	6.51%	8.81%	0.91%
Raiffeisen Bank International Competitors	16.63%	12.94%	1.07%

Summary

Raiffeisen Bank International rivals beat Raiffeisen Bank International on 11 of the 15 factors compared.

About Raiffeisen Bank International

Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.