Head to Head Contrast: Standard Chartered (OTCMKTS:SCBFF) and Northwest Bancshares (NASDAQ:NWBI)

Northwest Bancshares (NASDAQ:NWBI) and Standard Chartered (OTCMKTS:SCBFF) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Earnings & Valuation

This table compares Northwest Bancshares and Standard Chartered”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northwest Bancshares	$701.74 million	2.63	$134.96 million	$0.76	19.11
Standard Chartered	$37.48 billion	0.83	$3.47 billion	$1.50	8.13

Standard Chartered has higher revenue and earnings than Northwest Bancshares. Standard Chartered is trading at a lower price-to-earnings ratio than Northwest Bancshares, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Northwest Bancshares has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Standard Chartered has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

66.3% of Northwest Bancshares shares are owned by institutional investors. 1.0% of Northwest Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Northwest Bancshares and Standard Chartered, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northwest Bancshares	1	1	0	0	1.50
Standard Chartered	0	1	0	2	3.33

Northwest Bancshares currently has a consensus price target of $11.00, suggesting a potential downside of 24.24%. Given Northwest Bancshares’ higher probable upside, analysts plainly believe Northwest Bancshares is more favorable than Standard Chartered.

Dividends

Northwest Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 5.5%. Standard Chartered pays an annual dividend of $0.18 per share and has a dividend yield of 1.5%. Northwest Bancshares pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Standard Chartered pays out 12.0% of its earnings in the form of a dividend.

Profitability

This table compares Northwest Bancshares and Standard Chartered’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northwest Bancshares	13.19%	8.24%	0.89%
Standard Chartered	8.56%	8.80%	0.54%

About Northwest Bancshares

Northwest Bancshares, Inc. operates as the bank holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts various deposits, including checking, savings, money market deposit, term certificate, and individual retirement accounts. It also offers loan products comprising one-to-four-family residential real estate loans, shorter term consumer loans, and loans collateralized by multi-family residential and commercial real estate; home equity loans and lines of credit; commercial business and real estate loans; commercial loans; and consumer loans, including automobile loans, sales finance loans, unsecured personal loans, credit card loans, and loans secured by investment accounts, as well as investment management and trust services. The company operates community banking locations in Pennsylvania, Western New York, Eastern Ohio, and Indiana. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Columbus, Ohio.

About Standard Chartered

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.