Oversea-Chinese Banking (OTCMKTS:OVCHY) vs. Itau Unibanco (NYSE:ITUB) Head to Head Comparison

Oversea-Chinese Banking (OTCMKTS:OVCHY) and Itau Unibanco (NYSE:ITUB) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

0.0% of Oversea-Chinese Banking shares are held by institutional investors. 0.6% of Itau Unibanco shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Oversea-Chinese Banking and Itau Unibanco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oversea-Chinese Banking	1	0	0	0	1.00
Itau Unibanco	0	2	2	2	3.00

Itau Unibanco has a consensus target price of $6.27, indicating a potential downside of 9.61%. Given Itau Unibanco’s stronger consensus rating and higher possible upside, analysts clearly believe Itau Unibanco is more favorable than Oversea-Chinese Banking.

Dividends

Oversea-Chinese Banking pays an annual dividend of $1.13 per share and has a dividend yield of 4.4%. Itau Unibanco pays an annual dividend of $0.03 per share and has a dividend yield of 0.4%. Itau Unibanco pays out 4.2% of its earnings in the form of a dividend.

Profitability

This table compares Oversea-Chinese Banking and Itau Unibanco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oversea-Chinese Banking	N/A	N/A	N/A
Itau Unibanco	14.05%	19.48%	1.48%

Risk and Volatility

Oversea-Chinese Banking has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Itau Unibanco has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Valuation and Earnings

This table compares Oversea-Chinese Banking and Itau Unibanco”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oversea-Chinese Banking	$20.33 billion	2.85	$5.68 billion	N/A	N/A
Itau Unibanco	$62.19 billion	1.20	$7.62 billion	$0.71	9.77

Itau Unibanco has higher revenue and earnings than Oversea-Chinese Banking.

Summary

Itau Unibanco beats Oversea-Chinese Banking on 11 of the 15 factors compared between the two stocks.

About Oversea-Chinese Banking

Oversea-Chinese Banking Corporation Limited engages in the provision of financial services in Singapore, Malaysia, Indonesia, Greater China, rest of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high-net-worth individuals. Its Global Wholesale Banking segment provides long-term project financing, short-term credit, working capital, and trade financing; customized and structured equity-linked financing products; cash management and custodian services; capital market solutions; corporate finance and advisory banking services; and treasury products. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as structured treasury products and financial solutions. Its Insurance segment provides fund management services, and life and general insurance products. The company's Others segment is involved in property and investment holding activities. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

About Itau Unibanco

Itaú Unibanco Holding S.A. offers a range of financial products and services to individuals and corporate customers in Brazil and internationally. The company operates through three segments: Retail Banking, Wholesale Banking, and Activities with the Market + Corporation. It offers current account; loans; credit and debit cards; investment and commercial banking services; real estate lending services; financing and investment services; economic, financial and brokerage advisory; and leasing and foreign exchange services. The company also provides property and casualty insurance products covering loss, damage, or liabilities for assets or persons, as well as life insurance products covering death and personal accident. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and small companies, as well as middle-market companies and high net worth clients. The company was formerly known as Itaú Unibanco Banco Múltiplo S.A. and changed its name to Itaú Unibanco Holding S.A. in April 2009. The company was incorporated in 1924 and is headquartered in São Paulo, Brazil. Itaú Unibanco Holding S.A. operates as a subsidiary of IUPAR – Itaú Unibanco Participações S.A.