Analyzing VersaBank (NASDAQ:VBNK) & Oversea-Chinese Banking (OTCMKTS:OVCHY)

Oversea-Chinese Banking (OTCMKTS:OVCHYGet Free Report) and VersaBank (NASDAQ:VBNKGet Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Dividends

Oversea-Chinese Banking pays an annual dividend of $1.24 per share and has a dividend yield of 5.4%. VersaBank pays an annual dividend of $0.07 per share and has a dividend yield of 0.5%. VersaBank pays out 5.3% of its earnings in the form of a dividend.

Profitability

This table compares Oversea-Chinese Banking and VersaBank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oversea-Chinese Banking N/A N/A N/A
VersaBank 16.24% 11.85% 1.07%

Volatility and Risk

Oversea-Chinese Banking has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, VersaBank has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Oversea-Chinese Banking and VersaBank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oversea-Chinese Banking 0 0 0 0 N/A
VersaBank 0 0 2 0 3.00

VersaBank has a consensus price target of $16.00, suggesting a potential upside of 24.03%. Given VersaBank’s higher probable upside, analysts clearly believe VersaBank is more favorable than Oversea-Chinese Banking.

Institutional & Insider Ownership

0.0% of Oversea-Chinese Banking shares are held by institutional investors. Comparatively, 56.9% of VersaBank shares are held by institutional investors. 5.3% of VersaBank 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.

Earnings and Valuation

This table compares Oversea-Chinese Banking and VersaBank’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oversea-Chinese Banking $18.42 billion 2.82 $5.23 billion N/A N/A
VersaBank $176.45 million 1.90 $31.26 million $1.32 9.77

Oversea-Chinese Banking has higher revenue and earnings than VersaBank.

Summary

VersaBank beats Oversea-Chinese Banking on 8 of the 13 factors compared between the two stocks.

About Oversea-Chinese Banking

(Get Free Report)

Oversea-Chinese Banking Corporation Limited engages in the provision of financial services in Singapore, Malaysia, Indonesia, Greater China, rest of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high-net-worth individuals. Its Global Wholesale Banking segment provides long-term project financing, short-term credit, working capital, and trade financing; customized and structured equity-linked financing products; cash management and custodian services; capital market solutions; corporate finance and advisory banking services; and treasury products. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as structured treasury products and financial solutions. Its Insurance segment provides fund management services, and life and general insurance products. The company's Others segment is involved in property and investment holding activities. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

About VersaBank

(Get Free Report)

VersaBank provides various banking products and services in Canada and the United States. It offers deposit products, such as web-based chequing accounts, guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products. The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial banking services comprising commercial real estate, public sector/infrastructure financing, and condominium financing; and residential mortgages. In addition, it offers cybersecurity services. The company was formerly known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.

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