Reviewing ST BK CORP/SH SH (OTCMKTS:SBAZ) and HDFC Bank (OTCMKTS:HDB)

HDFC Bank (NYSE:HDB) and ST BK CORP/SH SH (OTCMKTS:SBAZ) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

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Volatility and Risk

HDFC Bank has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, ST BK CORP/SH SH has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Profitability

This table compares HDFC Bank and ST BK CORP/SH SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HDFC Bank 18.25% 14.02% 1.73%
ST BK CORP/SH SH 26.30% 12.75% 1.30%

Dividends

HDFC Bank pays an annual dividend of $0.41 per share and has a dividend yield of 0.7%. ST BK CORP/SH SH pays an annual dividend of $0.30 per share and has a dividend yield of 1.7%. HDFC Bank pays out 24.7% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares HDFC Bank and ST BK CORP/SH SH’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HDFC Bank $16.56 billion 6.84 $3.18 billion $1.66 37.58
ST BK CORP/SH SH $30.97 million 4.57 $8.58 million N/A N/A

HDFC Bank has higher revenue and earnings than ST BK CORP/SH SH.

Analyst Ratings

This is a summary of current ratings for HDFC Bank and ST BK CORP/SH SH, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HDFC Bank 0 1 1 0 2.50
ST BK CORP/SH SH 0 0 0 0 N/A

HDFC Bank currently has a consensus price target of $128.63, indicating a potential upside of 106.20%. Given HDFC Bank’s higher probable upside, equities research analysts clearly believe HDFC Bank is more favorable than ST BK CORP/SH SH.

Institutional and Insider Ownership

18.0% of HDFC Bank shares are held by institutional investors. Comparatively, 1.7% of ST BK CORP/SH SH shares are held by institutional investors. 1.0% of HDFC Bank shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

HDFC Bank beats ST BK CORP/SH SH on 11 of the 14 factors compared between the two stocks.

HDFC Bank Company Profile

HDFC Bank Limited provides a range of banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company operates in Treasury, Retail Banking, Wholesale Banking, and Other Banking Business segments. It accepts savings accounts, salary accounts, current accounts, fixed and recurring deposits, demat accounts, safe deposit lockers, and rural accounts, as well as offshore accounts and deposits. The company also offers personal, business, home, consumer durable, car, two wheeler, gold, educational, rural, and term loans; loans for professionals; loans against property, securities, and assets; overdrafts; government sponsored programs; and working capital, healthcare, channel, short term, structured, dealer, and vendor finance, as well as agricultural lending. In addition, it provides credit, debit, and prepaid cards; private banking services; export, import, remittance, bank guarantees, and letter of credit services, as well as merchant and cash management services; life, health, motor, travel, and home insurance products; and investment products, such as mutual funds, equities and derivatives, IPOs, and bonds. Further, the company offers bill discounting, real time gross settlement, bankers to right/public issue, forex, money market, employees trusts, and tax collection services; and investment banking services in the areas of project appraisal, structured finance, loan syndication, debt capital markets, equity placement, mergers and acquisitions, corporate advisory, and capital market advisory services. Additionally, it provides correspondent banking, settlement, custodial, disbursement, clearing, and administrative and fiduciary support services, as well as online and mobile banking services. As of February 18, 2019, the company had 5,000 branches in India. HDFC Bank Limited was founded in 1994 and is based in Mumbai, India.

ST BK CORP/SH SH Company Profile

State Bank Corp. engages in the provision of deposit and loan products through its subsidiary. It offers its products to individuals, businesses and professionals throughout Arizona. The company was founded in 2004 and is headquartered in Lake Havasu City, AZ.

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