Bank of N.T. Butterfield & Son (NYSE:NTB) vs. Bankinter (OTCMKTS:BKNIY) Head-To-Head Contrast

Bank of N.T. Butterfield & Son (NYSE:NTB) and Bankinter (OTCMKTS:BKNIY) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

62.7% of Bank of N.T. Butterfield & Son shares are owned by institutional investors. 1.2% of Bank of N.T. Butterfield & Son shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Bank of N.T. Butterfield & Son and Bankinter”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of N.T. Butterfield & Son	$800.02 million	2.92	$231.94 million	$5.78	9.63
Bankinter	$5.27 billion	2.77	$1.23 billion	$1.40	11.62

Bankinter has higher revenue and earnings than Bank of N.T. Butterfield & Son. Bank of N.T. Butterfield & Son is trading at a lower price-to-earnings ratio than Bankinter, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Bank of N.T. Butterfield & Son and Bankinter, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of N.T. Butterfield & Son	0	3	1	1	2.60
Bankinter	1	5	1	0	2.00

Bank of N.T. Butterfield & Son presently has a consensus price target of $55.00, suggesting a potential downside of 1.21%. Given Bank of N.T. Butterfield & Son’s stronger consensus rating and higher probable upside, research analysts clearly believe Bank of N.T. Butterfield & Son is more favorable than Bankinter.

Dividends

Bank of N.T. Butterfield & Son pays an annual dividend of $2.00 per share and has a dividend yield of 3.6%. Bankinter pays an annual dividend of $0.33 per share and has a dividend yield of 2.0%. Bank of N.T. Butterfield & Son pays out 34.6% of its earnings in the form of a dividend. Bankinter pays out 23.6% 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.

Profitability

This table compares Bank of N.T. Butterfield & Son and Bankinter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of N.T. Butterfield & Son	30.22%	21.92%	1.72%
Bankinter	23.50%	17.69%	0.86%

Risk and Volatility

Bank of N.T. Butterfield & Son has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Bankinter has a beta of -0.17, indicating that its share price is 117% less volatile than the S&P 500.

Summary

Bank of N.T. Butterfield & Son beats Bankinter on 12 of the 16 factors compared between the two stocks.

About Bank of N.T. Butterfield & Son

The Bank of N.T. Butterfield & Son Ltd. provides community banking and wealth management business. The firm operates through the following geographical segments: Bermuda, the Cayman Islands, Channel Islands and the UK, and Other. The Bermuda and Cayman segments offer retail banking and wealth management. The Channel Islands and the UK segment refers to the retail and corporate banking and wealth management. The Other segment includes operations in the jurisdictions of The Bahamas, Canada, Mauritius, Singapore and Switzerland. The company was founded in 1858 and is headquartered in Hamilton, Bermuda.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.