Critical Contrast: UniCredit (OTCMKTS:UNCFF) & Royal Bank Of Canada (NYSE:RY)

UniCredit (OTCMKTS:UNCFF) and Royal Bank Of Canada (NYSE:RY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Valuation and Earnings

This table compares UniCredit and Royal Bank Of Canada”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UniCredit	$48.38 billion	N/A	$10.52 billion	N/A	N/A
Royal Bank Of Canada	$98.71 billion	1.85	$11.92 billion	$9.00	14.40

Royal Bank Of Canada has higher revenue and earnings than UniCredit.

Insider and Institutional Ownership

45.3% of Royal Bank Of Canada shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares UniCredit and Royal Bank Of Canada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UniCredit	21.64%	15.33%	1.22%
Royal Bank Of Canada	13.37%	15.75%	0.87%

Risk and Volatility

UniCredit has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Royal Bank Of Canada has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for UniCredit and Royal Bank Of Canada, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UniCredit	0	0	0	0	0.00
Royal Bank Of Canada	0	2	5	1	2.88

Royal Bank Of Canada has a consensus price target of $193.00, indicating a potential upside of 48.91%. Given Royal Bank Of Canada’s stronger consensus rating and higher possible upside, analysts plainly believe Royal Bank Of Canada is more favorable than UniCredit.

Summary

Royal Bank Of Canada beats UniCredit on 8 of the 11 factors compared between the two stocks.

About UniCredit

UniCredit S.p.A. provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. It offers retail, private, and wealth management solutions; and institutional investor solutions. The company also provides corporate finance advisory, rating advisory, financial sponsor, patient capital, capital structure advisory, and finance solutions, as well as securities services. In addition, it offers transactional and risk management, and strategic advisory and funding services; group trade and correspondent banking services; and payments and cash management solutions. The company serves SME, corporate, multinational corporate, financial institution, and public sector clients, as well as retail, private banking, wealth management, and family office clients. The company was founded in 1870 and is headquartered in Milan, Italy.

About Royal Bank Of Canada

Royal Bank of Canada operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses. This segment offers financial products and services through branches, automated teller machines, and mobile sales network. Its Wealth Management segment provides a suite of wealth, investment, trust, banking, credit, and other advice-based solutions and strategies to high net worth and ultra-high net worth individuals, and institutional clients; asset management products to institutional and individual clients; and asset and investor services to financial institutions, asset managers, and asset owners. The company's Insurance segment offers life, health, home, auto, travel, wealth, annuities, property and casualty, and reinsurance advice and solutions; and business insurance services to individual, business, and group clients through its advice centers, RBC insurance stores, and mobile advisors; digital platforms; and independent brokers and partners. The company's Capital Markets segment offers advisory and origination, sales and trading, lending and financing, and transaction banking services to corporations, institutional clients, asset managers, private equity firms, and governments. The company was founded in 1864 and is headquartered in Toronto, Canada.