Critical Analysis: National Australia Bank (OTCMKTS:NABZY) & Camden National (NASDAQ:CAC)

Camden National (NASDAQ:CAC) and National Australia Bank (OTCMKTS:NABZY) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Earnings & Valuation

This table compares Camden National and National Australia Bank’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Camden National	$257.28 million	1.89	$43.38 million	$3.01	11.08
National Australia Bank	$33.43 billion	2.25	$4.94 billion	N/A	N/A

National Australia Bank has higher revenue and earnings than Camden National.

Institutional and Insider Ownership

77.4% of Camden National shares are held by institutional investors. 1.9% of Camden National 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 & Volatility

Camden National has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, National Australia Bank has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Dividends

Camden National pays an annual dividend of $1.68 per share and has a dividend yield of 5.0%. National Australia Bank pays an annual dividend of $0.52 per share and has a dividend yield of 4.3%. Camden National pays out 55.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Camden National and National Australia Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Camden National	0	0	0	0	N/A
National Australia Bank	0	0	0	0	N/A

Profitability

This table compares Camden National and National Australia Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Camden National	16.56%	10.66%	0.89%
National Australia Bank	N/A	N/A	N/A

Summary

Camden National beats National Australia Bank on 6 of the 11 factors compared between the two stocks.

About Camden National

Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers in Maine, New Hampshire, and Massachusetts. The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system. Its loan products include non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the small business administration, loans secured by one-to four-family properties, and consumer and home equity loans. The company also provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services. Camden National Corporation was founded in 1875 and is headquartered in Camden, Maine.

About National Australia Bank

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. It accepts transaction accounts, savings accounts, debit cards, and term deposits; and specialized accounts, such as foreign currency, business interest, cash maximiser, farm management, community free saver, statutory trust, and project bank accounts, as well as farm management deposits. In addition, the company provides home loans, personal loans, and business loans; vehicle and equipment finance; and trade and invoice finance, as well as business overdrafts and bank guarantees. Further, it offers insurance products consisting of home and content, landlord, travel, car, caravan and trailer, life, and business insurance products; and pension, self-managed super funds, cash management, and financial planning and advisory services. Additionally, the company provides investment products; credit, debit, and business cards; payments and merchant services; online and internet banking services; small business services; international and foreign exchange solutions; and industry specific banking services. The company was founded in 1834 and is based in Melbourne, Australia.