National Bank of Canada (OTCMKTS:NTIOF) vs. United Overseas Bank (OTC:UOVEY) Financial Analysis

United Overseas Bank (OTC:UOVEY) and National Bank of Canada (OTCMKTS:NTIOF) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Earnings and Valuation

This table compares United Overseas Bank and National Bank of Canada”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Overseas Bank	$20.86 billion	2.28	$4.25 billion	N/A	N/A
National Bank of Canada	$8.38 billion	3.85	$2.80 billion	$7.89	10.45

United Overseas Bank has higher revenue and earnings than National Bank of Canada.

Dividends

United Overseas Bank pays an annual dividend of $2.68 per share and has a dividend yield of 4.7%. National Bank of Canada pays an annual dividend of $3.15 per share and has a dividend yield of 3.8%. National Bank of Canada pays out 39.9% of its earnings in the form of a dividend.

Profitability

This table compares United Overseas Bank and National Bank of Canada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Overseas Bank	N/A	N/A	N/A
National Bank of Canada	24.65%	17.21%	0.83%

Insider & Institutional Ownership

0.0% of United Overseas Bank shares are owned by institutional investors. Comparatively, 0.1% of National Bank of Canada shares are owned by institutional investors. 0.3% of National Bank of Canada shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

United Overseas Bank has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, National Bank of Canada has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for United Overseas Bank and National Bank of Canada, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Overseas Bank	0	0	0	1	4.00
National Bank of Canada	0	4	0	0	2.00

Summary

National Bank of Canada beats United Overseas Bank on 7 of the 13 factors compared between the two stocks.

About United Overseas Bank

United Overseas Bank Limited, together with its subsidiaries, provides banking products and services. The company’s Group Retail segment provides deposits, insurance, card, wealth management, investment, and loan and trade financing products for personal and small enterprise customers. Its Group Wholesale Banking segment offers financing, trade, cash management, and capital markets solutions, as well as advisory and treasury products for medium and large enterprises, local corporations, multi-national corporations, financial institutions, government-linked entities, financial sponsors, and property funds. The company’s Global Markets segment provides foreign exchange, interest rate, credit, commodities, equities, and structured investment products; and manages funding and liquidity. Its Other segment offers investment management, property, and insurance services. The company also provides mobile and internet banking services. It operates through a network of approximately 500 branches, including wealth and privilege banking centres, private bank suites, business and commercial banking centres, and offices in 19 countries and territories in the Asia Pacific, Europe, and North America; and approximately 1.4 million automated teller machines. The company was formerly known as United Chinese Bank and changed its name to United Overseas Bank Limited in 1965. United Overseas Bank Limited was incorporated in 1935 and is headquartered in Singapore.

About National Bank of Canada

National Bank of Canada provides financial services to individuals, businesses, institutional clients, and governments in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, and savings and investment solutions; various insurance products; and commercial banking services, such as credit, and deposit, investment solutions, international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complimentary services. The Wealth Management segment provides full-service brokerage, private banking, direct brokerage, investment solutions, administrative and trade execution, transaction products, and trust and estate services. The Financial Markets segment offers corporate banking, advisory, and capital markets services; and project financing, debt, and equity underwriting; advisory services in the areas of mergers and acquisitions, and financing. The U.S. Specialty Finance and International segment provides specialty finance products; and personal and commercial banking in Cambodia. National Bank of Canada was founded in 1859 and is headquartered in Montreal, Canada.