Comparing Bank Hapoalim (OTCMKTS:BKHYY) & Commerzbank (OTCMKTS:CRZBY)

Bank Hapoalim (OTCMKTS:BKHYY) and Commerzbank (OTCMKTS:CRZBY) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Bank Hapoalim and Commerzbank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank Hapoalim	$12.56 billion	2.37	$2.84 billion	$10.79	10.52
Commerzbank	$26.54 billion	1.78	$2.97 billion	$2.53	17.03

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

Dividends

Bank Hapoalim pays an annual dividend of $3.31 per share and has a dividend yield of 2.9%. Commerzbank pays an annual dividend of $0.90 per share and has a dividend yield of 2.1%. Bank Hapoalim pays out 30.7% of its earnings in the form of a dividend. Commerzbank pays out 35.6% 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. Bank Hapoalim is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Bank Hapoalim and Commerzbank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank Hapoalim	22.10%	14.38%	1.19%
Commerzbank	11.55%	7.69%	0.46%

Analyst Ratings

This is a summary of recent recommendations and price targets for Bank Hapoalim and Commerzbank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank Hapoalim	0	2	0	0	2.00
Commerzbank	0	4	5	1	2.70

Volatility and Risk

Bank Hapoalim has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Commerzbank has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Summary

Bank Hapoalim beats Commerzbank on 8 of the 14 factors compared between the two stocks.

About Bank Hapoalim

Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Household, Private Banking, Small businesses and micro businesses, Mid-sized businesses, Large businesses, Institutional entities, and Financial management segments. The company offers account-management services, lending for various purposes, deposits, and savings plans, and capital-market service; housing loans; research and advisory services; and pension advisory and retirement planning services. It also provides products and services for the expansion of a business, advanced digital services, and a service center specializing in businesses; credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, and securities. In addition, the company offers financial services, including foreign-trade financing, financing of working capital, financing of assets overseas, complex financing transactions, syndication, and credit-risk transfers; and financing of construction projects, granting credit to customers, and issuing guarantees to buyers of homes. Further, it provides managers of mutual funds, managers of investment portfolios, and managers of provident funds, study funds, and pension funds; trading activities; underwriting services; and brokerage and custody services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.

About Commerzbank

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.