Alerus Financial (NASDAQ:ALRS – Get Free Report) and UniCredit (OTCMKTS:UNCRY – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Analyst Ratings
This is a summary of current ratings for Alerus Financial and UniCredit, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Alerus Financial | 0 | 3 | 1 | 0 | 2.25 |
UniCredit | 0 | 0 | 0 | 0 | N/A |
Alerus Financial currently has a consensus price target of $23.50, indicating a potential upside of 5.86%. Given Alerus Financial’s higher probable upside, equities research analysts plainly believe Alerus Financial is more favorable than UniCredit.
Risk & Volatility
Dividends
Alerus Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.6%. UniCredit pays an annual dividend of $0.66 per share and has a dividend yield of 3.2%. Alerus Financial pays out 163.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alerus Financial has increased its dividend for 21 consecutive years. Alerus Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
51.3% of Alerus Financial shares are owned by institutional investors. Comparatively, 0.3% of UniCredit shares are owned by institutional investors. 5.6% of Alerus Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Alerus Financial and UniCredit’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Alerus Financial | 2.39% | 7.30% | 0.66% |
UniCredit | N/A | N/A | N/A |
Valuation & Earnings
This table compares Alerus Financial and UniCredit’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Alerus Financial | $167.96 million | 2.61 | $11.70 million | $0.49 | 45.31 |
UniCredit | $26.50 billion | 2.54 | $9.32 billion | N/A | N/A |
UniCredit has higher revenue and earnings than Alerus Financial.
Summary
Alerus Financial beats UniCredit on 10 of the 14 factors compared between the two stocks.
About Alerus Financial
Alerus Financial Corporation operates as the bank holding company for Alerus Financial, National Association that engages in the provision of various financial services to businesses and consumers. The company operates in four segments: Banking, Mortgage, Retirement and Benefit Services, and Wealth Management. It offers various deposit products, including demand deposits, interest-bearing transaction accounts, money market accounts, time and savings deposits, checking accounts, and certificates of deposit; and treasury management products, including electronic receivables management, remote deposit capture, cash vault services, merchant services, and other cash management services. The company also provides commercial loans, business term loans, lines of credit, and commercial real estate loans, as well as construction and land development loans; consumer lending products, including residential first mortgage loans; installment loans and lines of credit; and second mortgage loans. In addition, it offers retirement plan administration and investment advisory services, employee stock ownership plan, fiduciary services, payroll, health savings accounts, and other benefit services, as well as individual retirement accounts; and financial planning, investment management, personal and corporate trust, estate administration, and custody services. Further, the company provides debit and credit cards, online banking, mobile banking/wallet, payment, private banking, payroll accounts, flex spending accounts, administration, and government health insurance program services. It offers banking services in North Dakota, Minnesota, and Arizona; and retirement and benefit plans through offices located in Michigan, Minnesota, and Colorado. The company was formerly known as First National Bank North Dakota and changed its name to Alerus Financial Corporation in 2000. Alerus Financial Corporation was founded in 1879 and is headquartered in Grand Forks, North Dakota.
About UniCredit
UniCredit S.p.A. provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. It offers retail, private, and wealth management solutions; and institutional investor solutions. The company also provides corporate finance advisory, rating advisory, financial sponsor, patient capital, capital structure advisory, and finance solutions, as well as securities services. In addition, it offers transactional and risk management, and strategic advisory and funding services; group trade and correspondent banking services; and payments and cash management solutions. The company serves SME, corporate, multinational corporate, financial institution, and public sector clients, as well as retail, private banking, wealth management, and family office clients. The company was founded in 1870 and is headquartered in Milan, Italy.
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