Analyzing HDFC Bank (NYSE:HDB) and CaixaBank (OTCMKTS:CAIXY)

CaixaBank (OTCMKTS:CAIXY) and HDFC Bank (NYSE:HDB) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Valuation and Earnings

This table compares CaixaBank and HDFC Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CaixaBank	$24.18 billion	3.60	$6.26 billion	N/A	N/A
HDFC Bank	$55.70 billion	2.99	$7.88 billion	$1.64	19.91

HDFC Bank has higher revenue and earnings than CaixaBank.

Risk & Volatility

CaixaBank has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, HDFC Bank has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Profitability

This table compares CaixaBank and HDFC Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CaixaBank	N/A	N/A	N/A
HDFC Bank	14.94%	11.49%	1.60%

Analyst Recommendations

This is a summary of recent recommendations and price targets for CaixaBank and HDFC Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CaixaBank	1	3	1	0	2.00
HDFC Bank	1	1	1	1	2.50

Dividends

CaixaBank pays an annual dividend of $0.07 per share and has a dividend yield of 1.7%. HDFC Bank pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. HDFC Bank pays out 19.5% of its earnings in the form of a dividend.

Institutional & Insider Ownership

17.6% of HDFC Bank shares are held by institutional investors. 1.0% of HDFC Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

HDFC Bank beats CaixaBank on 10 of the 13 factors compared between the two stocks.

About CaixaBank

CaixaBank, S.A., together with its subsidiaries, provides various banking products and financial services in Spain and internationally. The company operates through Banking and Insurance, Equity Investments, and BPI segments. It also provides solutions related to security, protection, internationalization, and financing; traditional financial advice, independent advice, and broker services; asset management; liquidity management; capital markets, cash management, project finance, asset finance, and M&A services; and various financial services and solutions to public and private sector institutions, as well as distributes non-life and life risk insurance policies; and private banking services. In addition, the company is involved in the real estate business. It has branches and ATMs in Spain; and branches and ATMs in Portugal. CaixaBank, S.A. was founded in 1904 and is based in Valencia, Spain.

About HDFC Bank

HDFC Bank Limited provides banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company operates in three segments: Wholesale Banking, Retail Banking, and Treasury Services. It accepts savings, salary, current, rural, public provident fund, pension, and demat accounts; fixed and recurring deposits; and safe deposit lockers, as well as offshore accounts and deposits, and overdrafts against fixed deposits. The company also provides personal, home, car, two-wheeler, business, doctor, educational, gold, consumer, and rural loans; loans against properties, securities, fixed deposits, rental receivables, and assets; loans for professionals; government sponsored programs; and loans on credit card, as well as working capital and commercial/construction equipment finance, healthcare/medical equipment and commercial vehicle finance, dealer finance, and term loans. In addition, it offers credit, debit, prepaid, and forex cards; payment and collection, export, import, remittance, bank guarantee, letter of credit, trade, hedging, and merchant and cash management services; insurance and investment products. Further, the company provides short term finance, bill discounting, structured finance, export credit, loan repayment, and documents collection services; online and wholesale, mobile, and phone banking services; unified payment interface, immediate payment, national electronic funds transfer, and real time gross settlement services; and channel financing, vendor financing, reimbursement account, money market, derivatives, employee trusts, cash surplus corporates, tax payment, and bankers to rights/public issue services, as well as financial solutions for supply chain partners and agricultural customers. It operates branches and automated teller machines in various cities/towns. The company was incorporated in 1994 and is headquartered in Mumbai, India.