Woori Bank (NYSE: WF) and First NBC Bank Holding (OTCMKTS:FNBC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitabiliy, dividends, valuation and earnings.
Analyst Recommendations
This is a summary of recent ratings for Woori Bank and First NBC Bank Holding, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Woori Bank | 0 | 1 | 1 | 0 | 2.50 |
| First NBC Bank Holding | 0 | 3 | 0 | 0 | 2.00 |
Woori Bank presently has a consensus target price of $7.00, suggesting a potential downside of 86.92%. First NBC Bank Holding has a consensus target price of $4.83, suggesting a potential upside of 3,705.77%. Given First NBC Bank Holding’s higher possible upside, analysts plainly believe First NBC Bank Holding is more favorable than Woori Bank.
Insider & Institutional Ownership
0.3% of Woori Bank shares are owned by institutional investors. Comparatively, 73.9% of First NBC Bank Holding shares are owned by institutional investors. 8.4% of First NBC Bank Holding shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Woori Bank and First NBC Bank Holding’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Woori Bank | 15.60% | 7.17% | 0.47% |
| First NBC Bank Holding | 10.67% | 3.71% | 0.33% |
Volatility and Risk
Woori Bank has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, First NBC Bank Holding has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.
Dividends
Woori Bank pays an annual dividend of $0.80 per share and has a dividend yield of 1.5%. First NBC Bank Holding does not pay a dividend. Woori Bank pays out 16.6% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Woori Bank and First NBC Bank Holding’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Woori Bank | N/A | N/A | N/A | $4.81 | 11.12 |
| First NBC Bank Holding | N/A | N/A | N/A | $3.09 | 0.04 |
First NBC Bank Holding is trading at a lower price-to-earnings ratio than Woori Bank, indicating that it is currently the more affordable of the two stocks.
Summary
Woori Bank beats First NBC Bank Holding on 7 of the 12 factors compared between the two stocks.
About Woori Bank
Woori Finance Holdings Co., Ltd. is a financial holding company. The Company serves over 24 million corporate and retail customers with a range of financial services, including commercial banking, credit card, capital market, international banking, wealth management and bancassurance services. The Company’s domestic network consists of more than 1,300 branches and 8,500 cash terminals. Its banking subsidiaries include Woori Bank, Kwangju Bank and Kyongnam Bank. Its non-banking subsidiaries include Woori Investment & Securities, Woori AVIVA Life Insurance, Woori CS Asset Management, Woori Financial, Woori Finance Information System, Woori F&I and Woori Private Equity.
About First NBC Bank Holding
First NBC Bank Holding Company is a bank holding company. The Company offers a range of financial services through its banking subsidiary, First NBC Bank. The Company operates through community banking segment. It offers financial services to businesses, institutions and individuals in southeastern Louisiana and the Florida panhandle. The Company’s primary focus is on commercial real estate and commercial lending. Its loans include construction loans, commercial real estate loans, consumer real estate loans, commercial and industrial loans, and consumer loans. Its securities portfolio consists primarily of the United States Government agency obligations, mortgage-backed securities, and municipal securities, although the Company also holds corporate bonds. The Company’s primary source of funding for its loans is deposits. Its deposits include noninterest-bearing demand, negotiable order of withdrawal (NOW) accounts, money market accounts, savings deposits and certificates of deposit.
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