Credit Saison (OTCMKTS:CSASF) vs. Capital One Financial (NYSE:COF) Head-To-Head Analysis

Credit Saison (OTCMKTS:CSASF) and Capital One Financial (NYSE:COF) are both financial services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Credit Saison and Capital One Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credit Saison	0	0	0	0	N/A
Capital One Financial	2	11	6	0	2.21

Capital One Financial has a consensus target price of $137.05, suggesting a potential downside of 4.10%. Given Capital One Financial’s higher possible upside, analysts clearly believe Capital One Financial is more favorable than Credit Saison.

Profitability

This table compares Credit Saison and Capital One Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Credit Saison	N/A	N/A	N/A
Capital One Financial	9.88%	9.24%	1.08%

Dividends

Credit Saison pays an annual dividend of C$23.91 per share and has a dividend yield of 151.3%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.7%. Credit Saison pays out 16.6% of its earnings in the form of a dividend. Capital One Financial pays out 20.1% 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. Credit Saison is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Credit Saison and Capital One Financial’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credit Saison	N/A	N/A	N/A	C$144.02	0.11
Capital One Financial	$49.48 billion	1.10	$4.89 billion	$11.95	11.96

Capital One Financial has higher revenue and earnings than Credit Saison. Credit Saison is trading at a lower price-to-earnings ratio than Capital One Financial, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

26.3% of Credit Saison shares are owned by institutional investors. Comparatively, 89.8% of Capital One Financial shares are owned by institutional investors. 1.3% of Capital One Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Capital One Financial beats Credit Saison on 9 of the 12 factors compared between the two stocks.

About Credit Saison

Credit Saison Co., Ltd. provides leasing, finance, real estate, entertainment, and payment services in Japan and internationally. The company offers credit cards, prepaid and debit cards, smartphone-based services, and information processing services; internet advertisement agency; marketing consulting; temporary staffing; and contracting services. It also engages in the credit guarantee and finance related businesses; real estate business; real estate leasing activities; and digital marketing and asset management services, as well as develops and manages amusement. Further, it involved in the import and sell of lifestyle goods; cleaning, security, and property maintenance services; debt collection; personal loan; life/non-life insurance agency; online ticket system and payment services; digital lending; and sells information security and office disaster prevention related services, etc. The company was formerly known as Seibu Credit Co., Ltd. and changed its name to Credit Saison Co., Ltd. in October 1989. Credit Saison Co., Ltd. was incorporated in 1951 and is headquartered in Tokyo, Japan.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.