Standard Chartered (OTCMKTS:SCBFF) & NU (NYSE:NU) Financial Contrast

Standard Chartered (OTCMKTS:SCBFF) and NU (NYSE:NU) are both large-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

84.0% of NU shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Standard Chartered has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, NU has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Profitability

This table compares Standard Chartered and NU’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard Chartered	12.27%	10.73%	0.65%
NU	17.90%	29.91%	4.65%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Standard Chartered and NU, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Chartered	0	1	0	0	2.00
NU	1	2	7	0	2.60

NU has a consensus price target of $15.7778, indicating a potential upside of 20.27%. Given NU’s stronger consensus rating and higher probable upside, analysts plainly believe NU is more favorable than Standard Chartered.

Earnings & Valuation

This table compares Standard Chartered and NU”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Chartered	$41.04 billion	1.01	$4.05 billion	$1.81	9.86
NU	$11.52 billion	5.49	$1.97 billion	$0.46	28.52

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

Summary

NU beats Standard Chartered on 10 of the 13 factors compared between the two stocks.

About Standard Chartered

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.

About NU

Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.