EFG International (OTCMKTS:EFGXY) and Citigroup (NYSE:C) Financial Analysis

EFG International (OTCMKTS:EFGXY) and Citigroup (NYSE:C) are both financial services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Profitability

This table compares EFG International and Citigroup’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EFG International	N/A	N/A	N/A
Citigroup	8.44%	7.29%	0.57%

Dividends

EFG International pays an annual dividend of C$0.18 per share and has a dividend yield of 1.3%. Citigroup pays an annual dividend of $2.24 per share and has a dividend yield of 2.3%. EFG International pays out 128.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Citigroup pays out 33.1% of its earnings in the form of a dividend. Citigroup has increased its dividend for 2 consecutive years. Citigroup is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for EFG International and Citigroup, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EFG International	0	1	0	0	2.00
Citigroup	0	5	10	0	2.67

Citigroup has a consensus price target of $96.54, suggesting a potential upside of 0.67%. Given Citigroup’s stronger consensus rating and higher probable upside, analysts clearly believe Citigroup is more favorable than EFG International.

Insider & Institutional Ownership

71.7% of Citigroup shares are owned by institutional investors. 0.1% of Citigroup shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares EFG International and Citigroup”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EFG International	N/A	N/A	N/A	C$0.14	96.52
Citigroup	$170.76 billion	1.05	$12.68 billion	$6.77	14.16

Citigroup has higher revenue and earnings than EFG International. Citigroup is trading at a lower price-to-earnings ratio than EFG International, indicating that it is currently the more affordable of the two stocks.

Summary

Citigroup beats EFG International on 13 of the 14 factors compared between the two stocks.

About EFG International

EFG International AG, together with its subsidiaries, provides private banking, wealth management, and asset management services. The company offers investment solutions, including discretionary mandates, structured products, and trading services; wealth planning and trust services; credit and financing services, such as Islamic, property, and investment financing; and eBanking services, including mobile banking and security services. It also provides other banking services consisting of custody, foreign exchange and treasury, and trading services, as well as accounts and cards, and metals; and supports independent asset managers to set up private label funds. The company operates in Europe, Asia Pacific, the Americas, and the Middle East. EFG International AG was founded in 1995 and is headquartered in Zurich, Switzerland.

About Citigroup

Citigroup Inc., a diversified financial service holding company, provides various financial product and services to consumers, corporations, governments, and institutions worldwide. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Services segment includes Treasury and Trade Solutions, which provides cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations; and Securities Services, such as cross-border support for clients, local market expertise, post-trade technologies, data solutions, and various securities services solutions. The Markets segment offers sales and trading services for equities, foreign exchange, rates, spread products, and commodities to corporate, institutional, and public sector clients; and market-making services, including asset classes, risk management solutions, financing, prime brokerage, research, securities clearing, and settlement. The banking segment includes investment banking; advisory services related to mergers and acquisitions, divestitures, restructurings, and corporate defense activities; and corporate lending, which includes corporate and commercial banking. The U.S. Personal Banking segment provides co-branded cards and retail banking services. The Wealth segment provides financial services to high-net-worth clients through banking, lending, mortgages, investment, custody, and trust product offerings; and to professional industries, including law firms, consulting groups, accounting, and asset management. The company was founded in 1812 and is headquartered in New York, New York.