Analyzing EFG International (EFGXY) and The Competition

EFG International (OTCMKTS:EFGXY) is one of 930 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare EFG International to similar companies based on the strength of its institutional ownership, risk, profitability, valuation, analyst recommendations, earnings and dividends.

Institutional & Insider Ownership

47.7% of shares of all “Banks” companies are owned by institutional investors. 9.9% of shares of all “Banks” companies are owned by 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.

Valuation & Earnings

This table compares EFG International and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
EFG International	N/A	N/A	148.05
EFG International Competitors	$28.37 billion	$2.37 billion	26.80

EFG International’s peers have higher revenue and earnings than EFG International. EFG International is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

EFG International pays an annual dividend of C$0.18 per share and has a dividend yield of 0.9%. EFG International pays out 128.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 9.7% and pay out 32.4% of their earnings in the form of a dividend. EFG International lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for EFG International and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EFG International	0	2	1	0	2.33
EFG International Competitors	7378	29704	26927	1340	2.34

As a group, “Banks” companies have a potential upside of 3.58%. Given EFG International’s peers stronger consensus rating and higher possible upside, analysts plainly believe EFG International has less favorable growth aspects than its peers.

Profitability

This table compares EFG International and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EFG International	N/A	N/A	N/A
EFG International Competitors	14.93%	9.59%	0.92%

Summary

EFG International peers beat EFG International on 12 of the 13 factors compared.

EFG International Company Profile

EFG International AG, together with its subsidiaries, provides private banking, wealth management, and asset management services. The company offers investment solutions, including discretionary mandates, structured products, and trading services; wealth planning and trust services; credit and financing services, such as Islamic, property, and investment financing; and eBanking services, including mobile banking and security services. It also provides other banking services consisting of custody, foreign exchange and treasury, and trading services, as well as accounts and cards, and metals; and supports independent asset managers to set up private label funds. The company operates in Europe, Asia Pacific, the Americas, and the Middle East. EFG International AG was founded in 1995 and is headquartered in Zurich, Switzerland.