Royal Bank of Scotland Group (NYSE: RBS) and Itau Corpbanca (NYSE:ITCB) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Institutional and Insider Ownership
0.5% of Royal Bank of Scotland Group shares are held by institutional investors. Comparatively, 0.7% of Itau Corpbanca shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for Royal Bank of Scotland Group and Itau Corpbanca, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Royal Bank of Scotland Group||0||9||6||0||2.40|
Volatility & Risk
Royal Bank of Scotland Group has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Itau Corpbanca has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.
Earnings and Valuation
This table compares Royal Bank of Scotland Group and Itau Corpbanca’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Royal Bank of Scotland Group||$20.53 billion||2.30||-$7.13 billion||($0.72)||-10.97|
|Itau Corpbanca||$2.27 billion||1.48||$18.72 million||$0.14||105.93|
Itau Corpbanca has lower revenue, but higher earnings than Royal Bank of Scotland Group. Royal Bank of Scotland Group is trading at a lower price-to-earnings ratio than Itau Corpbanca, indicating that it is currently the more affordable of the two stocks.
This table compares Royal Bank of Scotland Group and Itau Corpbanca’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Royal Bank of Scotland Group||-17.46%||7.75%||0.49%|
Royal Bank of Scotland Group beats Itau Corpbanca on 7 of the 12 factors compared between the two stocks.
About Royal Bank of Scotland Group
The Royal Bank of Scotland Group plc (RBS) is a banking and financial services company. The Company provides a range of products and services to personal, commercial, corporate and institutional customers, through its subsidiaries, The Royal Bank of Scotland plc and National Westminster Bank Plc (NatWest), as well as through other brands, including Ulster Bank and Coutts. The Company’s segments include Personal & Business Banking (PBB), Commercial & Private Banking (CPB), NatWest Markets (NWM), Capital Resolution, Williams & Glyn (W&G), and Central items & other. The Company’s products and services include banking and risk management, such as payments, insurance and liquidity management; personal lending, including personal loans and credit cards; deposits, such as current accounts and savings accounts; investments, such as portfolio management and unitized funds; commercial lending, including business lending, and capital markets, including rates, currencies and financing.
About Itau Corpbanca
Itau Corpbanca is a Chile-based financial institution (the Bank) engaged in the banking sector. The Bank operates in seven segments: Large, Corporate and Real Estate Companies, which includes companies that belong to major economic groups and specific industries; Companies, which includes leasing, factoring and other financial services for business customers; Traditional and Private Banking, which offers checking accounts, consumer loans, credit cards and mortgage loans; Lower Income Retail Banking, corresponding to operations of Banco Condell, which offers consumer loans, credit cards and mortgage loans; Treasury and International, which comprises treasury activities, such as financial management and funding; Non-Banking Financial Services, which provides services rendered by its subsidiaries, including insurance brokerage, financial advisory and securities brokerage, and Colombia, which includes commercial and retail banking services provided by CorpBanca Colombia and Helm Bank.
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