National Australia Bank (OTCMKTS:NABZY) and Bank of America (NYSE:BAC) Head to Head Contrast

National Australia Bank (OTCMKTS:NABZY) and Bank of America (NYSE:BAC) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Insider and Institutional Ownership

70.7% of Bank of America shares are owned by institutional investors. 0.3% of Bank of America shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

National Australia Bank pays an annual dividend of $0.51 per share and has a dividend yield of 4.0%. Bank of America pays an annual dividend of $1.04 per share and has a dividend yield of 2.3%. Bank of America pays out 31.0% of its earnings in the form of a dividend. Bank of America has increased its dividend for 11 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and target prices for National Australia Bank and Bank of America, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Australia Bank	0	0	0	0	0.00
Bank of America	1	5	17	4	2.89

Bank of America has a consensus target price of $47.50, indicating a potential upside of 5.53%. Given Bank of America’s stronger consensus rating and higher probable upside, analysts clearly believe Bank of America is more favorable than National Australia Bank.

Profitability

This table compares National Australia Bank and Bank of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Australia Bank	N/A	N/A	N/A
Bank of America	14.10%	10.29%	0.84%

Risk & Volatility

National Australia Bank has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.

Earnings & Valuation

This table compares National Australia Bank and Bank of America”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Australia Bank	$36.86 billion	2.10	$4.59 billion	N/A	N/A
Bank of America	$103.44 billion	3.28	$27.13 billion	$3.36	13.40

Bank of America has higher revenue and earnings than National Australia Bank.

Summary

Bank of America beats National Australia Bank on 14 of the 16 factors compared between the two stocks.

About National Australia Bank

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. It accepts transaction accounts, savings accounts, debit cards, and term deposits; and specialized accounts, such as foreign currency, business interest, cash maximiser, farm management, community free saver, statutory trust, and project bank accounts, as well as farm management deposits. In addition, the company provides home loans, personal loans, and business loans; vehicle and equipment finance; and trade and invoice finance, as well as business overdrafts and bank guarantees. Further, it offers insurance products consisting of home and content, landlord, travel, car, caravan and trailer, life, and business insurance products; and pension, self-managed super funds, cash management, and financial planning and advisory services. Additionally, the company provides investment products; credit, debit, and business cards; payments and merchant services; online and internet banking services; small business services; international and foreign exchange solutions; and industry specific banking services. The company was founded in 1834 and is based in Melbourne, Australia.

About Bank of America

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, non-interest and interest-bearing checking accounts, and investment accounts and products; credit and debit cards; residential mortgages, and home equity loans; and direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, short-term investing options, and merchant services; working capital management solutions; debt and equity underwriting and distribution, and merger-related and other advisory services; and fixed-income and equity research, and certain market-based services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.