Financial Review: Bankinter (OTCMKTS:BKNIY) vs. Bank of N.T. Butterfield & Son (NYSE:NTB)

Bankinter (OTCMKTS:BKNIY) and Bank of N.T. Butterfield & Son (NYSE:NTB) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Dividends

Bankinter pays an annual dividend of $0.33 per share and has a dividend yield of 2.0%. Bank of N.T. Butterfield & Son pays an annual dividend of $2.00 per share and has a dividend yield of 3.5%. Bankinter pays out 23.6% of its earnings in the form of a dividend. Bank of N.T. Butterfield & Son pays out 34.6% 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Bankinter and Bank of N.T. Butterfield & Son, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bankinter	1	5	1	0	2.00
Bank of N.T. Butterfield & Son	0	3	1	1	2.60

Bank of N.T. Butterfield & Son has a consensus target price of $55.00, suggesting a potential downside of 2.52%. Given Bank of N.T. Butterfield & Son’s stronger consensus rating and higher possible upside, analysts plainly believe Bank of N.T. Butterfield & Son is more favorable than Bankinter.

Volatility and Risk

Bankinter has a beta of -0.15, suggesting that its share price is 115% less volatile than the S&P 500. Comparatively, Bank of N.T. Butterfield & Son has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Insider and Institutional Ownership

62.7% of Bank of N.T. Butterfield & Son shares are held by institutional investors. 1.2% of Bank of N.T. Butterfield & Son shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Bankinter and Bank of N.T. Butterfield & Son’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bankinter	23.50%	17.69%	0.86%
Bank of N.T. Butterfield & Son	30.22%	21.92%	1.72%

Earnings and Valuation

This table compares Bankinter and Bank of N.T. Butterfield & Son”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bankinter	$5.27 billion	2.84	$1.23 billion	$1.40	11.88
Bank of N.T. Butterfield & Son	$614.96 million	3.85	$231.94 million	$5.78	9.76

Bankinter has higher revenue and earnings than Bank of N.T. Butterfield & Son. Bank of N.T. Butterfield & Son is trading at a lower price-to-earnings ratio than Bankinter, indicating that it is currently the more affordable of the two stocks.

Summary

Bank of N.T. Butterfield & Son beats Bankinter on 12 of the 16 factors compared between the two stocks.

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.

About Bank of N.T. Butterfield & Son

The Bank of N.T. Butterfield & Son Ltd. provides community banking and wealth management business. The firm operates through the following geographical segments: Bermuda, the Cayman Islands, Channel Islands and the UK, and Other. The Bermuda and Cayman segments offer retail banking and wealth management. The Channel Islands and the UK segment refers to the retail and corporate banking and wealth management. The Other segment includes operations in the jurisdictions of The Bahamas, Canada, Mauritius, Singapore and Switzerland. The company was founded in 1858 and is headquartered in Hamilton, Bermuda.