Head-To-Head Comparison: Bancolombia (CIB) vs. National Bank of Canada (NTIOF)

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bancolombia 0 7 0 0 2.00
National Bank of Canada 0 1 0 0 2.00

Bancolombia presently has a consensus price target of $43.00, indicating a potential downside of 2.52%. Given Bancolombia’s higher probable upside, research analysts clearly believe Bancolombia is more favorable than National Bank of Canada.

Earnings & Valuation

This table compares Bancolombia 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
Bancolombia $5.76 billion 1.84 $784.50 million $3.64 12.12
National Bank of Canada $6.85 billion 2.49 $1.48 billion $4.17 12.11

National Bank of Canada has higher revenue and earnings than Bancolombia. National Bank of Canada is trading at a lower price-to-earnings ratio than Bancolombia, indicating that it is currently the more affordable of the two stocks.

Dividends

Bancolombia pays an annual dividend of $1.40 per share and has a dividend yield of 3.2%. National Bank of Canada pays an annual dividend of $1.91 per share and has a dividend yield of 3.8%. Bancolombia pays out 38.5% of its earnings in the form of a dividend. National Bank of Canada pays out 45.8% 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.

Institutional and Insider Ownership

11.0% of Bancolombia shares are owned by institutional investors. Comparatively, 0.1% of National Bank of Canada shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Bancolombia has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, National Bank of Canada has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Bancolombia 10.59% 8.67% 1.01%
National Bank of Canada 20.94% 18.59% 0.87%

Summary

National Bank of Canada beats Bancolombia on 8 of the 13 factors compared between the two stocks.

About Bancolombia

Bancolombia S.A. provides various banking products and services to individual, corporate, and government customers in Colombia, Latin America, and the Caribbean region. The company operates in nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, Off Shore, and All Other. It offers checking and savings accounts, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, overdrafts, and financing for industrial projects; mortgage banking and factoring services; and financial and operating leasing services. The company also provides capital market products, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services, including selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency transaction services; and life, auto, commercial, and homeowner's insurance products. Further, the company provides investment banking services comprising project and acquisition finance, debt and equity capital markets, principal investments, merger and acquisition, restructurings, and structured corporate lending; trust and asset management services, such as money market accounts, mutual and pension funds, private equity funds, payment trust, custody, and corporate trust; digital banking and revolving credit facility services. Additionally, it is involved in transportation, real estate brokerage, maintenance and remodeling, advertising and marketing, and outsourcing activities. The company operates 1,153 branches, 10,349 banking correspondents, and 590 mobile service spots; 227 kiosks; and 5,630 automatic teller machines. Bancolombia S.A. was founded in 1945 and is headquartered in Medellín, Colombia.

About National Bank of Canada

National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It operates through Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International segments. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, savings options, and tailored investment solutions; various insurance products; and commercial banking services, such as credit, and deposit and investment solutions, as well as international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complementary services. The Wealth Management segment provides investment solutions, trust services, banking services, lending services, and other wealth management solutions through internal and third-party distribution networks. The Financial Markets segment offers debt and equity underwriting; bank credit and risk management products and services; advisory services in the areas of mergers and acquisitions, and financing; and investment banking services comprising origination, underwriting, distribution, and liquidity services through secondary market activities, as well as macroeconomic and issuer-focused research services. The U.S. Specialty Finance and International segments provides specialty finance expertise; financial products and services to individuals and businesses in Cambodia; and the activities of targeted investments in certain emerging markets. The company provides its services through a network of 429 branches and 931 banking machines. The company was founded in 1859 and is headquartered in Montreal, Canada.

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