National Bank of Canada (OTCMKTS:NTIOF) vs. First Republic Bank (OTCMKTS:FRCB) Critical Analysis

First Republic Bank (OTCMKTS:FRCB) and National Bank of Canada (OTCMKTS:NTIOF) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Republic Bank	N/A	N/A	N/A
National Bank of Canada	24.65%	17.21%	0.83%

Insider and Institutional Ownership

0.0% of First Republic Bank shares are held by institutional investors. Comparatively, 0.1% of National Bank of Canada shares are held by institutional investors. 0.7% of First Republic Bank shares are held by company insiders. Comparatively, 0.3% of National Bank of Canada shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares First Republic Bank and National Bank of Canada”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Republic Bank	$6.75 billion	0.00	$1.67 billion	N/A	N/A
National Bank of Canada	$8.38 billion	4.13	$2.80 billion	$7.85	11.27

National Bank of Canada has higher revenue and earnings than First Republic Bank.

Risk & Volatility

First Republic Bank has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, National Bank of Canada has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for First Republic Bank and National Bank of Canada, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Republic Bank	0	0	0	0	0.00
National Bank of Canada	0	1	0	1	3.00

Summary

National Bank of Canada beats First Republic Bank on 9 of the 11 factors compared between the two stocks.

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.

About National Bank of Canada

National Bank of Canada provides financial services to individuals, businesses, institutional clients, and governments in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, and savings and investment solutions; various insurance products; and commercial banking services, such as credit, and deposit, investment solutions, international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complimentary services. The Wealth Management segment provides full-service brokerage, private banking, direct brokerage, investment solutions, administrative and trade execution, transaction products, and trust and estate services. The Financial Markets segment offers corporate banking, advisory, and capital markets services; and project financing, debt, and equity underwriting; advisory services in the areas of mergers and acquisitions, and financing. The U.S. Specialty Finance and International segment provides specialty finance products; and personal and commercial banking in Cambodia. National Bank of Canada was founded in 1859 and is headquartered in Montreal, Canada.