` Comparison: NU vs 601398 - Alpha Spread

NU
vs
601398

Over the past 12 months, NU has significantly outperformed Industrial and Commercial Bank of China Ltd, delivering a return of +33% compared to the Industrial and Commercial Bank of China Ltd's +8% growth.

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NU
601398
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Valuation Comparison

NU Intrinsic Value
18.3 USD
Undervaluation 26%
Intrinsic Value
Price
Intrinsic Value
15.46 CNY
Undervaluation 52%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Multiples-Based Value Wall St Target
Nu Holdings Ltd
NYSE:NU
13.6 USD
Industrial and Commercial Bank of China Ltd
SSE:601398
7.42 CNY
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
NU, 601398

NU
601398
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Nu Holdings Ltd
Revenue
Industrial and Commercial Bank of China Ltd
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
NU, 601398

NU
601398
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Nu Holdings Ltd
NYSE:NU
Industrial and Commercial Bank of China Ltd
SSE:601398
FCF is not applicable for financial companies
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What is Free Cash Flow?

Gross Margin

NU
42%
Industrial and Commercial Bank of China Ltd
LTM 3Y Avg 5Y Avg 10Y Avg
Nu Holdings Ltd
Industrial and Commercial Bank of China Ltd
Not applicable for financial companies

Operating Margin

NU
24.5%
Industrial and Commercial Bank of China Ltd
LTM 3Y Avg 5Y Avg 10Y Avg
Nu Holdings Ltd
Industrial and Commercial Bank of China Ltd
Not applicable for financial companies

Net Margin

NU
18.2%
Industrial and Commercial Bank of China Ltd
41.3%

FCF Margin

NU
20%
Industrial and Commercial Bank of China Ltd
LTM 3Y Avg 5Y Avg 10Y Avg
Nu Holdings Ltd
Industrial and Commercial Bank of China Ltd
Not applicable for financial companies

ROE

NU
30.3%
Industrial and Commercial Bank of China Ltd
8.8%

ROA

NU
4.6%
Industrial and Commercial Bank of China Ltd
0.7%

ROIC

NU
6.8%
Industrial and Commercial Bank of China Ltd
LTM 3Y Avg 5Y Avg 10Y Avg
Nu Holdings Ltd
Industrial and Commercial Bank of China Ltd
Not applicable for financial companies

ROCE

NU
29.1%
Industrial and Commercial Bank of China Ltd
LTM 3Y Avg 5Y Avg 10Y Avg
Nu Holdings Ltd
Industrial and Commercial Bank of China Ltd
Not applicable for financial companies

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
NU, 601398

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Performance Gap
NU, 601398

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NU
601398
Difference
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Performance By Year
NU, 601398

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NU
601398
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Compare NU to other stocks
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Ally Financial Inc
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JPM
JPMorgan Chase & Co
More expensive
vs NU
CPI
Capitec Bank Holdings Ltd
C
More expensive
vs NU
SBK
Standard Bank Group Ltd
S
More expensive
vs NU
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett