Intesa Sanpaolo (OTCMKTS:ISNPY) & Regions Financial (OTCMKTS:RF) Critical Contrast

Intesa Sanpaolo (OTCMKTS:ISNPY) and Regions Financial (NYSE:RF) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Intesa Sanpaolo and Regions Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intesa Sanpaolo 0 3 3 0 2.50
Regions Financial 0 9 7 1 2.53

Regions Financial has a consensus target price of $13.77, indicating a potential upside of 26.76%. Given Regions Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Regions Financial is more favorable than Intesa Sanpaolo.

Profitability

This table compares Intesa Sanpaolo and Regions Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intesa Sanpaolo N/A N/A N/A
Regions Financial 20.35% 9.09% 1.09%

Insider and Institutional Ownership

1.0% of Intesa Sanpaolo shares are held by institutional investors. Comparatively, 73.1% of Regions Financial shares are held by institutional investors. 0.5% of Regions Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Intesa Sanpaolo and Regions Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intesa Sanpaolo $18.28 billion 1.84 $5.51 billion N/A N/A
Regions Financial $6.76 billion 1.54 $1.58 billion $1.55 7.01

Intesa Sanpaolo has higher revenue and earnings than Regions Financial.

Volatility & Risk

Intesa Sanpaolo has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Regions Financial has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.

Dividends

Intesa Sanpaolo pays an annual dividend of $0.96 per share and has a dividend yield of 8.3%. Regions Financial pays an annual dividend of $0.62 per share and has a dividend yield of 5.7%. Regions Financial pays out 40.0% of its earnings in the form of a dividend. Regions Financial has increased its dividend for 7 consecutive years.

Summary

Regions Financial beats Intesa Sanpaolo on 11 of the 16 factors compared between the two stocks.

About Intesa Sanpaolo

Intesa Sanpaolo S.p.A. provides various banking products and services. It operates through Banca dei Territori, Corporate and Investment Banking, International Subsidiary Banks, Asset Management, Private Banking, and Insurance segments. The company offers lending and deposit products; corporate, investment banking, and public finance services; industrial credit, factoring, and leasing services; asset management solutions; life and non-life insurance products; and bancassurance and pension fund, and fiduciary services. It also provides consumer credit, e-money, and payment systems; wealth management and private banking services. The company serves individuals, small and medium-sized businesses, non-profit entities, corporates and financial institutions, private clients and high net worth individuals, commercial networks and institutional clienteles, and other customers. It operates through a network of approximately 4,200 branches in Italy and 1,100 branches in Central Eastern Europe, and the Middle Eastern and North African areas. The company is headquartered in Turin, Italy.

About Regions Financial

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers in the United States. It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management. The Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending; equipment lease financing services; corresponding deposit products; and securities underwriting and placement, loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services. It serves corporate, middle market, and commercial real estate developers and investors. The Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, branch small business and indirect loans, consumer credit cards, and other consumer loans, as well as the corresponding deposit relationships. The Wealth Management segment offers credit related products, and retirement and savings solutions; and trust and investment management, asset management, and estate planning services to individuals, businesses, governmental institutions, and non-profit entities. The company also provides investment and insurance products; low income housing tax credit corporate fund syndication services; and other specialty financing services. As of February 21, 2019, it operated 1,500 banking offices and 2,000 automated teller machines across the South, Midwest, and Texas. Regions Financial Corporation was founded in 1852 and is headquartered in Birmingham, Alabama.

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