Head to Head Analysis: BNP Paribas (OTCMKTS:BNPQY) vs. Commerzbank (OTCMKTS:CRZBY)

Commerzbank (OTCMKTS:CRZBY) and BNP Paribas (OTCMKTS:BNPQY) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Risk and Volatility

Commerzbank has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, BNP Paribas has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Insider and Institutional Ownership

1.2% of BNP Paribas shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Commerzbank and BNP Paribas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerzbank	0	5	2	1	2.50
BNP Paribas	1	4	3	0	2.25

Dividends

Commerzbank pays an annual dividend of $0.51 per share and has a dividend yield of 1.5%. BNP Paribas pays an annual dividend of $3.12 per share and has a dividend yield of 6.7%. Commerzbank pays out 22.5% of its earnings in the form of a dividend. BNP Paribas pays out 52.8% 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.

Earnings and Valuation

This table compares Commerzbank and BNP Paribas”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerzbank	$25.96 billion	1.51	$2.90 billion	$2.27	15.33
BNP Paribas	$57.94 billion	1.78	$13.83 billion	$5.91	7.94

BNP Paribas has higher revenue and earnings than Commerzbank. BNP Paribas is trading at a lower price-to-earnings ratio than Commerzbank, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Commerzbank and BNP Paribas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commerzbank	11.03%	7.29%	0.45%
BNP Paribas	23.53%	9.18%	0.43%

Summary

BNP Paribas beats Commerzbank on 10 of the 15 factors compared between the two stocks.

About Commerzbank

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

About BNP Paribas

BNP Paribas SA provides various banking and financial products and services in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through three divisions: Corporate & Institutional Banking; Commercial, Personal Banking & Services; and Investment & Protection Services. The Corporate & Institutional Banking division offers capital market, securities, investment banking, financing, risk management, cash management, and financial advisory services for corporate clients and institutional investors. The Commercial, Personal Banking & Services division provides financing and equipment leasing services, mobility, and digital banking services, as well as current accounts, savings products, bancassurance, insurance products and services, and consumer loans. The Investment & Protection Services division provides protection, savings, investment, and real estate services to support individuals, professionals, corporate clients, and institutions. The company was formerly known as Banque Nationale de Paris and changed its name to BNP Paribas SA in May 2000. BNP Paribas SA was founded in 1822 and is headquartered in Paris, France.