Critical Analysis: BNP Paribas (OTCMKTS:BNPQY) vs. UniCredit (OTCMKTS:UNCFF)

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

Analyst Ratings

This is a summary of current ratings and target prices for BNP Paribas and UniCredit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BNP Paribas	0	4	3	0	2.43
UniCredit	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BNP Paribas	23.86%	9.61%	0.44%
UniCredit	27.51%	16.29%	1.30%

Insider & 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 stock is poised for long-term growth.

Volatility and Risk

BNP Paribas has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, UniCredit has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Valuation and Earnings

This table compares BNP Paribas and UniCredit”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BNP Paribas	$57.94 billion	1.92	$13.83 billion	$6.23	8.13
UniCredit	$41.32 billion	3.09	$12.35 billion	N/A	N/A

BNP Paribas has higher revenue and earnings than UniCredit.

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.

About UniCredit

UniCredit S.p.A. provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. It offers retail, private, and wealth management solutions; and institutional investor solutions. The company also provides corporate finance advisory, rating advisory, financial sponsor, patient capital, capital structure advisory, and finance solutions, as well as securities services. In addition, it offers transactional and risk management, and strategic advisory and funding services; group trade and correspondent banking services; and payments and cash management solutions. The company serves SME, corporate, multinational corporate, financial institution, and public sector clients, as well as retail, private banking, wealth management, and family office clients. The company was founded in 1870 and is headquartered in Milan, Italy.