Standard Chartered (SCBFF) and Its Competitors Critical Analysis

Standard Chartered (OTC:SCBFF) is one of 182 public companies in the “National commercial banks” industry, but how does it contrast to its rivals? We will compare Standard Chartered to similar companies based on the strength of its risk, earnings, profitability, analyst recommendations, valuation, institutional ownership and dividends.

Volatility & Risk

Standard Chartered has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Standard Chartered’s rivals have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Profitability

This table compares Standard Chartered and its rivals’ 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%
Standard Chartered Competitors	15.01%	9.56%	0.97%

Dividends

Standard Chartered pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. Standard Chartered pays out 40.9% of its earnings in the form of a dividend. As a group, “National commercial banks” companies pay a dividend yield of 2.6% and pay out 32.6% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations for Standard Chartered and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Chartered	0	0	0	1	4.00
Standard Chartered Competitors	1594	8916	7393	308	2.35

As a group, “National commercial banks” companies have a potential upside of 12.52%. Given Standard Chartered’s rivals higher possible upside, analysts clearly believe Standard Chartered has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Standard Chartered and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Standard Chartered	$37.48 billion	$3.47 billion	11.46
Standard Chartered Competitors	$163.51 billion	$1.81 billion	12.22

Standard Chartered’s rivals have higher revenue, but lower earnings than Standard Chartered. Standard Chartered is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

54.5% of shares of all “National commercial banks” companies are owned by institutional investors. 8.7% of shares of all “National commercial banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Standard Chartered rivals beat Standard Chartered on 11 of the 15 factors compared.

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.