UniCredit (OTCMKTS:UNCRY) & Simmons First National (NASDAQ:SFNC) Financial Analysis

Simmons First National (NASDAQ:SFNC) and UniCredit (OTCMKTS:UNCRY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Risk and Volatility

Simmons First National has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, UniCredit has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Insider and Institutional Ownership

27.6% of Simmons First National shares are held by institutional investors. Comparatively, 0.3% of UniCredit shares are held by institutional investors. 1.9% of Simmons First National shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Simmons First National and UniCredit’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simmons First National	$1.37 billion	1.51	$175.06 million	$1.33	12.34
UniCredit	$26.50 billion	2.26	$9.32 billion	N/A	N/A

UniCredit has higher revenue and earnings than Simmons First National.

Analyst Recommendations

This is a breakdown of recent recommendations for Simmons First National and UniCredit, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simmons First National	0	3	0	0	2.00
UniCredit	0	0	0	0	N/A

Simmons First National currently has a consensus price target of $21.00, indicating a potential upside of 27.97%. Given Simmons First National’s higher possible upside, equities analysts plainly believe Simmons First National is more favorable than UniCredit.

Profitability

This table compares Simmons First National and UniCredit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simmons First National	11.97%	5.94%	0.73%
UniCredit	35.89%	14.67%	1.08%

Dividends

Simmons First National pays an annual dividend of $0.84 per share and has a dividend yield of 5.1%. UniCredit pays an annual dividend of $0.66 per share and has a dividend yield of 3.7%. Simmons First National pays out 63.2% of its earnings in the form of a dividend. Simmons First National has increased its dividend for 13 consecutive years. Simmons First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

UniCredit beats Simmons First National on 8 of the 13 factors compared between the two stocks.

About Simmons First National

Simmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. The company offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; treasury management; insurance products; and securities and investment services. It also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. The company was founded in 1903 and is headquartered in Pine Bluff, Arkansas.

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.