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HDB vs. PRU: A Head-to-Head Stock Comparison

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Here’s a clear look at HDB and PRU, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

HDB trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, PRU is a standard domestic listing.

SymbolHDBPRU
Company NameHDFC Bank LimitedPrudential Financial, Inc.
CountryIndiaUnited States
GICS SectorFinancialsFinancials
GICS IndustryBanksInsurance
Market Capitalization191.80 billion USD37.70 billion USD
ExchangeNYSENYSE
Listing DateJuly 20, 2001December 13, 2001
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of HDB and PRU by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

HDB vs. PRU: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolHDBPRU
5-Day Price Return0.42%0.29%
13-Week Price Return3.27%-0.79%
26-Week Price Return15.82%-4.27%
52-Week Price Return21.77%-7.46%
Month-to-Date Return-1.48%3.43%
Year-to-Date Return12.20%-9.62%
10-Day Avg. Volume6.79M1.63M
3-Month Avg. Volume9.72M1.67M
3-Month Volatility12.41%22.10%
Beta-0.121.05

Profitability

Return on Equity (TTM)

HDB

13.78%

Banks Industry

Max
26.37%
Q3
15.92%
Median
12.25%
Q1
8.69%
Min
0.15%

HDB’s Return on Equity of 13.78% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

PRU

5.49%

Insurance Industry

Max
29.03%
Q3
18.11%
Median
13.90%
Q1
10.42%
Min
-0.64%

PRU’s Return on Equity of 5.49% is in the lower quartile for the Insurance industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

HDB vs. PRU: A comparison of their Return on Equity (TTM) against their respective Banks and Insurance industry benchmarks.

Net Profit Margin (TTM)

HDB

32.49%

Banks Industry

Max
54.20%
Q3
35.70%
Median
28.97%
Q1
22.53%
Min
6.98%

HDB’s Net Profit Margin of 32.49% is aligned with the median group of its peers in the Banks industry. This indicates its ability to convert revenue into profit is typical for the sector.

PRU

2.96%

Insurance Industry

Max
26.78%
Q3
14.06%
Median
9.15%
Q1
5.48%
Min
-7.05%

Falling into the lower quartile for the Insurance industry, PRU’s Net Profit Margin of 2.96% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

HDB vs. PRU: A comparison of their Net Profit Margin (TTM) against their respective Banks and Insurance industry benchmarks.

Operating Profit Margin (TTM)

HDB

42.04%

Banks Industry

Max
63.35%
Q3
44.59%
Median
37.24%
Q1
28.25%
Min
13.37%

HDB’s Operating Profit Margin of 42.04% is around the midpoint for the Banks industry, indicating that its efficiency in managing core business operations is typical for the sector.

PRU

3.74%

Insurance Industry

Max
35.49%
Q3
19.49%
Median
14.35%
Q1
8.53%
Min
-5.25%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

HDB vs. PRU: A comparison of their Operating Profit Margin (TTM) against their respective Banks and Insurance industry benchmarks.

Profitability at a Glance

SymbolHDBPRU
Return on Equity (TTM)13.78%5.49%
Return on Assets (TTM)1.64%0.22%
Net Profit Margin (TTM)32.49%2.96%
Operating Profit Margin (TTM)42.04%3.74%
Gross Profit Margin (TTM)----

Financial Strength

Current Ratio (MRQ)

HDB

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

PRU

--

Insurance Industry

Max
2.97
Q3
1.33
Median
0.55
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

HDB vs. PRU: A comparison of their Current Ratio (MRQ) against their respective Banks and Insurance industry benchmarks.

Debt-to-Equity Ratio (MRQ)

HDB

1.11

Banks Industry

Max
4.75
Q3
2.62
Median
1.02
Q1
0.39
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.

PRU

0.71

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.22
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

HDB vs. PRU: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Banks and Insurance industry benchmarks.

Interest Coverage Ratio (TTM)

HDB

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.

PRU

--

Insurance Industry

Max
43.68
Q3
20.84
Median
9.56
Q1
3.34
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

HDB vs. PRU: A comparison of their Interest Coverage Ratio (TTM) against their respective Banks and Insurance industry benchmarks.

Financial Strength at a Glance

SymbolHDBPRU
Current Ratio (MRQ)----
Quick Ratio (MRQ)----
Debt-to-Equity Ratio (MRQ)1.110.71
Interest Coverage Ratio (TTM)----

Growth

Revenue Growth

HDB vs. PRU: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

HDB vs. PRU: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

HDB

0.97%

Banks Industry

Max
10.27%
Q3
5.83%
Median
3.81%
Q1
2.50%
Min
0.00%

HDB’s Dividend Yield of 0.97% is in the lower quartile for the Banks industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

PRU

5.07%

Insurance Industry

Max
8.23%
Q3
4.54%
Median
3.42%
Q1
1.97%
Min
0.00%

With a Dividend Yield of 5.07%, PRU offers a more attractive income stream than most of its peers in the Insurance industry, signaling a strong commitment to shareholder returns.

HDB vs. PRU: A comparison of their Dividend Yield (TTM) against their respective Banks and Insurance industry benchmarks.

Dividend Payout Ratio (TTM)

HDB

83.17%

Banks Industry

Max
147.07%
Q3
80.55%
Median
54.40%
Q1
35.71%
Min
0.00%

HDB’s Dividend Payout Ratio of 83.17% is in the upper quartile for the Banks industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

PRU

85.37%

Insurance Industry

Max
168.02%
Q3
85.57%
Median
50.71%
Q1
22.04%
Min
0.00%

PRU’s Dividend Payout Ratio of 85.37% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

HDB vs. PRU: A comparison of their Dividend Payout Ratio (TTM) against their respective Banks and Insurance industry benchmarks.

Dividend at a Glance

SymbolHDBPRU
Dividend Yield (TTM)0.97%5.07%
Dividend Payout Ratio (TTM)83.17%85.37%

Valuation

Price-to-Earnings Ratio (TTM)

HDB

21.65

Banks Industry

Max
20.05
Q3
12.65
Median
10.21
Q1
7.54
Min
2.74

At 21.65, HDB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Banks industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

PRU

23.06

Insurance Industry

Max
28.91
Q3
17.76
Median
13.63
Q1
10.02
Min
2.89

A P/E Ratio of 23.06 places PRU in the upper quartile for the Insurance industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

HDB vs. PRU: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Banks and Insurance industry benchmarks.

Price-to-Sales Ratio (TTM)

HDB

6.77

Banks Industry

Max
5.06
Q3
2.98
Median
2.24
Q1
1.59
Min
0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

PRU

0.68

Insurance Industry

Max
3.72
Q3
1.98
Median
1.23
Q1
0.81
Min
0.23

In the lower quartile for the Insurance industry, PRU’s P/S Ratio of 0.68 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

HDB vs. PRU: A comparison of their Price-to-Sales Ratio (TTM) against their respective Banks and Insurance industry benchmarks.

Price-to-Book Ratio (MRQ)

HDB

2.83

Banks Industry

Max
2.18
Q3
1.36
Median
1.09
Q1
0.81
Min
0.20

At 2.83, HDB’s P/B Ratio is at an extreme premium to the Banks industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

PRU

1.24

Insurance Industry

Max
4.37
Q3
2.48
Median
1.68
Q1
1.19
Min
0.19

PRU’s P/B Ratio of 1.24 is within the conventional range for the Insurance industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

HDB vs. PRU: A comparison of their Price-to-Book Ratio (MRQ) against their respective Banks and Insurance industry benchmarks.

Valuation at a Glance

SymbolHDBPRU
Price-to-Earnings Ratio (TTM)21.6523.06
Price-to-Sales Ratio (TTM)6.770.68
Price-to-Book Ratio (MRQ)2.831.24
Price-to-Free Cash Flow Ratio (TTM)12.418.20