Comparing Intesa Sanpaolo (OTCMKTS:ISNPY) & ING Group (NYSE:ING)

Intesa Sanpaolo (OTCMKTS:ISNPY) and ING Group (NYSE:ING) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Dividends

Intesa Sanpaolo pays an annual dividend of $1.87 per share and has a dividend yield of 5.0%. ING Group pays an annual dividend of $0.69 per share and has a dividend yield of 2.6%. Intesa Sanpaolo pays out 55.7% of its earnings in the form of a dividend. ING Group pays out 28.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Intesa Sanpaolo and ING Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intesa Sanpaolo	22.67%	13.57%	0.97%
ING Group	27.50%	12.05%	0.59%

Analyst Recommendations

This is a summary of current recommendations and price targets for Intesa Sanpaolo and ING Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intesa Sanpaolo	0	4	4	1	2.67
ING Group	0	1	6	2	3.11

Volatility & Risk

Intesa Sanpaolo has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, ING Group has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Institutional & Insider Ownership

1.2% of Intesa Sanpaolo shares are held by institutional investors. Comparatively, 4.5% of ING Group 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.

Valuation and Earnings

This table compares Intesa Sanpaolo and ING Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intesa Sanpaolo	$48.17 billion	2.26	$9.38 billion	$3.36	11.19
ING Group	$26.06 billion	3.00	$9.42 billion	$2.39	11.24

ING Group has lower revenue, but higher earnings than Intesa Sanpaolo. Intesa Sanpaolo is trading at a lower price-to-earnings ratio than ING Group, indicating that it is currently the more affordable of the two stocks.

Summary

ING Group beats Intesa Sanpaolo on 10 of the 15 factors compared between the two stocks.

About Intesa Sanpaolo

Intesa Sanpaolo S.p.A. provides various financial products and services primarily in Italy. It operates through six segments: Banca dei Territori, IMI Corporate & Investment Banking, International Subsidiary Banks, Asset Management, Private Banking, and Insurance. The company offers lending and deposit products; private and commercial banking, corporate and transaction banking, structured finance, investment banking, public finance, and capital markets; industrial credit, leasing, and factoring; asset management; life and non-life insurance and pension products; asset and wealth management; private investments; and bancassurance products. The company serves individuals, small and medium-sized businesses, non-profit customers, corporates and financial institutions, public administration, private clients and high net worth individuals, institutional clientele, and other customers. Intesa Sanpaolo S.p.A. was founded in 1998 and is headquartered in Turin, Italy.

About ING Group

ING Groep N.V. provides various banking products and services in the Netherlands, Belgium, Germany, rest of Europe, and internationally. It operates through five segments: Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking. The company accepts current and savings accounts. It also offers business lending products; SME loans; consumer lending products, such as residential mortgage loans and other consumer lending loans; and mortgages. In addition, the company provides working capital solutions; debt and equity market solutions; various loans; payments; and cash management, trade and corporate finance, and treasury services, as well as savings, investment, insurance, and digital banking services. It serves individual customers, corporate clients, and financial institutions. ING Groep N.V. was founded in 1762 and is headquartered in Amsterdam, the Netherlands.