Financial Survey: Standard Chartered (OTCMKTS:SCBFF) & Northwest Bancshares (NASDAQ:NWBI)

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

Profitability

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

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

Institutional & Insider Ownership

66.3% of Northwest Bancshares shares are held by institutional investors. 1.1% of Northwest Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

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

Analyst Ratings

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

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

Northwest Bancshares has a consensus target price of $11.00, indicating a potential downside of 26.08%. Given Northwest Bancshares’ higher probable upside, analysts clearly believe Northwest Bancshares is more favorable than Standard Chartered.

Dividends

Standard Chartered pays an annual dividend of $0.18 per share and has a dividend yield of 1.5%. Northwest Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 5.4%. Standard Chartered pays out 12.0% of its earnings in the form of a dividend. 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Chartered	$37.48 billion	0.79	$3.47 billion	$1.50	8.00
Northwest Bancshares	$701.74 million	2.70	$134.96 million	$0.76	19.58

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.

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 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.