Financial Review: Akbank Turk Anonim Sirketi (OTCMKTS:AKBTY) versus Woori Bank (NYSE:WF)

Akbank Turk Anonim Sirketi (OTCMKTS:AKBTY) and Woori Bank (NYSE:WF) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Dividends

Akbank Turk Anonim Sirketi pays an annual dividend of $0.08 per share and has a dividend yield of 3.1%. Woori Bank pays an annual dividend of $1.67 per share and has a dividend yield of 2.4%. Akbank Turk Anonim Sirketi pays out 13.3% of its earnings in the form of a dividend. Woori Bank pays out 19.2% 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. Akbank Turk Anonim Sirketi is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Akbank Turk Anonim Sirketi and Woori Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akbank Turk Anonim Sirketi	$19.70 billion	0.34	$1.45 billion	$0.60	4.30
Woori Bank	$16.27 billion	1.03	$2.16 billion	$8.68	7.95

Woori Bank has lower revenue, but higher earnings than Akbank Turk Anonim Sirketi. Akbank Turk Anonim Sirketi is trading at a lower price-to-earnings ratio than Woori Bank, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Akbank Turk Anonim Sirketi and Woori Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akbank Turk Anonim Sirketi	8.19%	21.13%	1.83%
Woori Bank	13.28%	8.33%	0.53%

Institutional and Insider Ownership

3.4% of Woori Bank shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Akbank Turk Anonim Sirketi has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Woori Bank has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Akbank Turk Anonim Sirketi and Woori Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akbank Turk Anonim Sirketi	0	0	0	0	0.00
Woori Bank	0	1	1	0	2.50

Summary

Woori Bank beats Akbank Turk Anonim Sirketi on 9 of the 14 factors compared between the two stocks.

About Akbank Turk Anonim Sirketi

Akbank T.A.S., together with its subsidiaries, provides various banking products and services in Turkey and internationally. It operates through Consumer Banking and Private Banking; Commercial Banking, Corporate Banking, and SME Banking; and Treasury, Other, and Unallovated segments. The company’s consumer banking services comprise deposit accounts, retail loans, commercial installment loans, credit cards, insurance products, and asset management services, as well as bank cards, investment funds trading, automatic payment, foreign currency trading, safe deposit box rental, cheques, money transfer, investment banking, and telephone and internet banking. It also offers services to large, medium, and small size corporate and commercial customers that include Turkish Lira (TL) and foreign currency denominated working capital loans financing for investments, foreign trade financing, derivative instruments for hedging purposes of foreign currency and interest risk, letters of credit, foreign currency trading, corporate finance, and deposit and cash management services, as well as project finance loans; and working capital management, delivering cash management services based on customers’ requests, such as collection and payment services, and liquidity and information management. In addition, the company engages in treasury activities consisting of TL and foreign currency spot and forward transactions, treasury and government bonds, Eurobonds, and private sector bond transactions, as well as derivative trading activities; and marketing and pricing activities related to treasury products. Further, it provides financial leasing services, investment and pension funds management, and portfolio management, as well as offers payment services and issues electronic money. Akbank T.A.S. was incorporated in 1948 and is headquartered in Istanbul, Turkey.

About Woori Bank

Woori Financial Group Inc., a financial holding company, operates as a commercial bank that provides a range of financial products and services to individuals, corporations, and small- and medium-sized enterprises in Korea. It operates through Banking, Credit Card, Capital, Investment Banking, and Others segments. The company offers savings, demand, installment, and time deposits; certificates of deposit; repurchase instruments; and working capital, facilities, general purpose household, mortgage, and home equity loans. It also provides debit and credit cards, cash services, card loans, and related services; lease financing; and securities operation, sale of financial instruments, project financing, and other related solutions. In addition, the company offers credit purchase, cash advance, credit card loans, foreign exchange services and dealing, import and export-related services, offshore lending, syndicated loans and foreign currency securities investment, investment trust products, bancassurance, and private equity funds. Further, it is involved in the real estate trust, system software development and maintenance, financing, credit information, securities investment and trading, derivatives trading, trust, asset securitization, investment and international banking, money transfer, and other services. Additionally, the company offers automated telephone, internet, and mobile banking services; and trust management, trustee, and custodian services. Woori Financial Group Inc. was founded in 1899 and is headquartered in Seoul, South Korea.