Australia and New Zealand Banking (ANZBY) & Its Peers Critical Review

Australia and New Zealand Banking (OTCMKTS: ANZBY) is one of 62 public companies in the “Commercial banks, not elsewhere classified” industry, but how does it weigh in compared to its competitors? We will compare Australia and New Zealand Banking to similar businesses based on the strength of its dividends, risk, valuation, profitability, earnings, institutional ownership and analyst recommendations.

Earnings & Valuation

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This table compares Australia and New Zealand Banking and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Australia and New Zealand Banking $26.30 billion $4.88 billion 11.82
Australia and New Zealand Banking Competitors $13.63 billion $2.15 billion 10.50

Australia and New Zealand Banking has higher revenue and earnings than its competitors. Australia and New Zealand Banking is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Australia and New Zealand Banking and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Australia and New Zealand Banking N/A N/A N/A
Australia and New Zealand Banking Competitors 18.73% 12.20% 1.05%

Insider & Institutional Ownership

0.1% of Australia and New Zealand Banking shares are owned by institutional investors. Comparatively, 23.5% of shares of all “Commercial banks, not elsewhere classified” companies are owned by institutional investors. 0.3% of Australia and New Zealand Banking shares are owned by company insiders. Comparatively, 12.9% of shares of all “Commercial banks, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Australia and New Zealand Banking pays an annual dividend of $1.20 per share and has a dividend yield of 5.8%. Australia and New Zealand Banking pays out 69.0% of its earnings in the form of a dividend. As a group, “Commercial banks, not elsewhere classified” companies pay a dividend yield of 2.5% and pay out 35.5% of their earnings in the form of a dividend.

Risk & Volatility

Australia and New Zealand Banking has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Australia and New Zealand Banking’s competitors have a beta of 0.92, suggesting that their average share price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Australia and New Zealand Banking and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Australia and New Zealand Banking 0 0 0 0 N/A
Australia and New Zealand Banking Competitors 467 1472 1446 68 2.32

As a group, “Commercial banks, not elsewhere classified” companies have a potential upside of 11.95%. Given Australia and New Zealand Banking’s competitors higher possible upside, analysts plainly believe Australia and New Zealand Banking has less favorable growth aspects than its competitors.

Summary

Australia and New Zealand Banking competitors beat Australia and New Zealand Banking on 7 of the 12 factors compared.

About Australia and New Zealand Banking

Australia and New Zealand Banking Group Limited provides a range of banking and financial products and services. The Company’s segments include Australia; New Zealand; Institutional; Asia Retail & Pacific; Wealth Australia, and Technology, Services and Operations (TSO) and Group Centre. The Company’s operations span Australia, New Zealand, and a number of countries in the Asia Pacific region, the United Kingdom, France, Germany and the United States. The Australia division consists of the retail and the corporate and commercial banking (C&CB) business units. The New Zealand division consists of the retail and the commercial business units. The Institutional division services global institutional and business customers. The Asia Retail & Pacific division consists of the Asia retail and the Pacific business units. The Wealth Australia division consists of the insurance and funds management business units. The TSO and Group Centre division provides support to the operating divisions.

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