Head-To-Head Contrast: Standard Chartered (OTC:SCBFF) and Valley National Bancorp (NASDAQ:VLY)

Standard Chartered (OTC:SCBFF) and Valley National Bancorp (NASDAQ:VLY) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Dividends

Standard Chartered pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Valley National Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 5.0%. Standard Chartered pays out 40.9% of its earnings in the form of a dividend. Valley National Bancorp pays out 63.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of current ratings and price targets for Standard Chartered and Valley National Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Chartered	0	0	0	1	4.00
Valley National Bancorp	0	5	4	0	2.44

Valley National Bancorp has a consensus target price of $10.78, indicating a potential upside of 22.75%. Given Valley National Bancorp’s higher probable upside, analysts plainly believe Valley National Bancorp is more favorable than Standard Chartered.

Insider and Institutional Ownership

61.0% of Valley National Bancorp shares are held by institutional investors. 1.9% of Valley National Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Standard Chartered has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Valley National Bancorp has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares Standard Chartered and Valley National Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard Chartered	10.92%	9.49%	0.58%
Valley National Bancorp	10.62%	5.14%	0.55%

Earnings & Valuation

This table compares Standard Chartered and Valley National Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Chartered	$37.48 billion	0.97	$3.47 billion	$1.37	10.77
Valley National Bancorp	$1.84 billion	2.67	$380.27 million	$0.69	12.72

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

Summary

Standard Chartered beats Valley National Bancorp on 9 of the 17 factors compared between the two stocks.

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.

About Valley National Bancorp

Valley National Bancorp operates as the holding company for Valley National Bank that provides various commercial, private banking, retail, insurance, and wealth management financial services products. It operates through Consumer Banking, Commercial Banking, and Treasury and Corporate other segments. The company offers non-interest bearing, savings, NOW, money market, and time deposit accounts; commercial and industrial, commercial real estate, residential mortgage, and automobile loans; loans secured by the cash surrender value of life insurance; home equity loans and lines of credit; automobile financing; and secured and unsecured other consumer loans. It also invests in various securities and interest-bearing deposits with other banks; and provides international banking services, such as standby and documentary letters of credit, and related products, as well as foreign exchange transactions, documentary collections, and foreign wire transfers services. In addition, the company offers investment services for individuals and small to medium sized businesses; and trusts investment strategies designed for various investment profiles and objectives. Further, it provides trust services, such as living and testamentary trusts, investment management, custodial and escrow services, and estate administration to individuals; tax credit advisory services; brokerage services; property and casualty, life, health, and title insurance agency services; and health care equipment lending and other commercial equipment leasing services, as well as owns real estate related investments. Additionally, the company offers online, mobile, and telephone banking services; receivable, payment, and security solution, merchant, payroll processing, and liquidity services; credit cards; and drive-in and night deposit, automated teller machine, remote deposit capture, and safe deposit facility services. Valley National Bancorp was founded in 1927 and is headquartered in Morristown, New Jersey.