Head-To-Head Analysis: Metro Bank (MBNKF) & Westpac Banking (WBK)

Westpac Banking (NYSE:WBK) and Metro Bank (OTCMKTS:MBNKF) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Dividends

Westpac Banking pays an annual dividend of $1.38 per share and has a dividend yield of 7.2%. Metro Bank does not pay a dividend. Westpac Banking pays out 79.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Westpac Banking has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Metro Bank has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Insider & Institutional Ownership

0.6% of Westpac Banking shares are owned by institutional investors. Comparatively, 4.3% of Metro Bank shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Westpac Banking and Metro Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Westpac Banking N/A N/A N/A
Metro Bank N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Westpac Banking and Metro Bank, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westpac Banking 2 2 2 0 2.00
Metro Bank 0 1 1 0 2.50

Earnings and Valuation

This table compares Westpac Banking and Metro Bank’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Westpac Banking $28.76 billion 2.28 $6.09 billion $1.74 11.07
Metro Bank $344.86 million 7.83 N/A N/A N/A

Westpac Banking has higher revenue and earnings than Metro Bank.

Summary

Metro Bank beats Westpac Banking on 5 of the 8 factors compared between the two stocks.

About Westpac Banking

Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally. It operates through five divisions: Consumer Bank, Business Bank, BT Financial Group, Westpac Institutional Bank, and Westpac New Zealand. It offers everyday banking, savings, term deposit, moving to Australia, under 21 and student, business, community solutions one, not-for-profit savings, and foreign currency accounts; term, tailor-made, and farm management deposits; debit, credit, and travel money cards; home, personal, investment, small business, and commercial loans; and equipment, automotive, cash flow, property, and insurance premium financing services. It also provides home and content, landlord, car, travel, boat, caravan and trailer, life, credit card and loan repayment, income protection, business, farm pack, person income, and business overheads insurance products; superannuation and retirement products; investment portfolios; installment warrants; and trading, financial advisory, wealth, foreign currency exchange, international payment, cash flow management, international trade, and import and export services. In addition, it offers industry specific banking and treasury services; other services, such as emergency cash, online and telephone banking, ATMs, unclaimed money, travel center, margin lending, and banking services to migrants moving to Australia; and mobile wallets. Further, it provides capital advisory and fund management, transactional and private banking, and financial market services; and corporate and structured finance, as well as trade and supply chain finance. It serves individuals; micro, small, and medium enterprises; and commercial, corporate, institutional, and government customers. The company was formerly known as Bank of New South Wales and changed its name to Westpac Banking Corporation in October 1982. The company was founded in 1817 and is headquartered in Sydney, Australia.

About Metro Bank

Metro Bank PLC, together with its subsidiaries, provides retail and corporate banking services in the United Kingdom. The company offers personal banking products and services, including current and savings accounts; residential mortgages; credit cards and personal loans; and safe deposit box services. It also provides business banking products and services comprising deposit accounts, including business instant access, fixed term, client monies, and business tracker notice accounts; commercial loans, working capital, business credit cards, asset financing, invoice financing, and portfolio buy-to-let; business credit cards, cash management services; and partnership banking services. Metro Bank PLC was incorporated in 2007 and is headquartered in London, the United Kingdom.

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