Financial Review: First Republic Bank (OTCMKTS:FRCB) & HDFC Bank (NYSE:HDB)

HDFC Bank (NYSE:HDB) and First Republic Bank (OTCMKTS:FRCB) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Insider and Institutional Ownership

17.6% of HDFC Bank shares are owned by institutional investors. Comparatively, 0.0% of First Republic Bank shares are owned by institutional investors. 1.0% of HDFC Bank shares are owned by company insiders. Comparatively, 0.7% of First Republic Bank shares are owned by company insiders. 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.

Earnings and Valuation

This table compares HDFC Bank and First Republic Bank’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HDFC Bank	$2,360.44 billion	0.05	$7.75 billion	$3.26	18.75
First Republic Bank	$6.75 billion	0.00	$1.67 billion	N/A	N/A

HDFC Bank has higher revenue and earnings than First Republic Bank.

Profitability

This table compares HDFC Bank and First Republic Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HDFC Bank	14.69%	12.64%	1.70%
First Republic Bank	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for HDFC Bank and First Republic Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HDFC Bank	0	1	0	1	3.00
First Republic Bank	0	0	0	0	N/A

Risk and Volatility

HDFC Bank has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, First Republic Bank has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Dividends

HDFC Bank pays an annual dividend of $0.59 per share and has a dividend yield of 1.0%. First Republic Bank pays an annual dividend of 1.08 per share and has a dividend yield of 8,307.7%. HDFC Bank pays out 18.1% of its earnings in the form of a dividend.

Summary

HDFC Bank beats First Republic Bank on 9 of the 12 factors compared between the two stocks.

About HDFC Bank

HDFC Bank Limited provides banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company operates in three segments: Wholesale Banking, Retail Banking, and Treasury Services. It accepts savings, salary, current, rural, public provident fund, pension, and demat accounts; fixed and recurring deposits; and safe deposit lockers, as well as offshore accounts and deposits, and overdrafts against fixed deposits. The company also provides personal, home, car, two-wheeler, business, doctor, educational, gold, consumer, and rural loans; loans against properties, securities, fixed deposits, rental receivables, and assets; loans for professionals; government sponsored programs; and loans on credit card, as well as working capital and commercial/construction equipment finance, healthcare/medical equipment and commercial vehicle finance, dealer finance, and term loans. In addition, it offers credit, debit, prepaid, and forex cards; payment and collection, export, import, remittance, bank guarantee, letter of credit, trade, hedging, and merchant and cash management services; insurance and investment products. Further, the company provides short term finance, bill discounting, structured finance, export credit, loan repayment, and documents collection services; online and wholesale, mobile, and phone banking services; unified payment interface, immediate payment, national electronic funds transfer, and real time gross settlement services; and channel financing, vendor financing, reimbursement account, money market, derivatives, employee trusts, cash surplus corporates, tax payment, and bankers to rights/public issue services, as well as financial solutions for supply chain partners and agricultural customers. It operates branches and automated teller machines in various cities/towns. The company was incorporated in 1994 and is headquartered in Mumbai, India.

About First Republic Bank

As of May 1, 2023, First Republic Bank went out of business. Previously, First Republic Bank provided private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. The company was founded in 1985 and was headquartered in San Francisco, California. First Republic Bank now trades on OTCPK.