Financial Survey: ING Group (NYSE:ING) & Bankinter (OTCMKTS:BKNIY)

ING Group (NYSE:ING) and Bankinter (OTCMKTS:BKNIY) are both large-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for ING Group and Bankinter, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ING Group	0	4	4	1	2.67
Bankinter	1	5	1	0	2.00

Profitability

This table compares ING Group and Bankinter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ING Group	27.50%	12.05%	0.59%
Bankinter	23.00%	17.47%	0.85%

Dividends

ING Group pays an annual dividend of $1.03 per share and has a dividend yield of 3.5%. Bankinter pays an annual dividend of $0.33 per share and has a dividend yield of 1.9%. ING Group pays out 43.1% of its earnings in the form of a dividend. Bankinter pays out 24.4% 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 ING Group and Bankinter”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ING Group	$26.06 billion	3.27	$9.42 billion	$2.39	12.24
Bankinter	$5.27 billion	2.98	$1.23 billion	$1.35	12.95

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

Institutional and Insider Ownership

4.5% of ING Group shares are owned by institutional investors. 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.

Risk and Volatility

ING Group has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Bankinter has a beta of -0.14, meaning that its share price is 114% less volatile than the S&P 500.

Summary

ING Group beats Bankinter on 11 of the 15 factors compared between the two stocks.

About ING Group

ING Groep N.V. provides various banking products and services in the Netherlands, Belgium, Germany, rest of Europe, and internationally. It operates through five segments: Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking. The company accepts current and savings accounts. It also offers business lending products; SME loans; consumer lending products, such as residential mortgage loans and other consumer lending loans; and mortgages. In addition, the company provides working capital solutions; debt and equity market solutions; various loans; payments; and cash management, trade and corporate finance, and treasury services, as well as savings, investment, insurance, and digital banking services. It serves individual customers, corporate clients, and financial institutions. ING Groep N.V. was founded in 1762 and is headquartered in Amsterdam, the Netherlands.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.