WallStSmart

HDFC Bank Limited ADR (HDB)vsVersaBank (VBNK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HDFC Bank Limited ADR generates 2201504% more annual revenue ($2.85T vs $129.24M). HDB leads profitability with a 26.2% profit margin vs 24.3%. HDB trades at a lower P/E of 17.6x. HDB earns a higher WallStSmart Score of 78/100 (B+).

HDB

Strong Buy

78

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 8.7Quality: 5.3
Piotroski: 3/9Altman Z: -0.14

VBNK

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 6.5Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HDBUndervalued (+11.2%)

Margin of Safety

+11.2%

Fair Value

$36.29

Current Price

$25.79

$10.50 discount

UndervaluedFair: $36.29Overvalued
VBNKUndervalued (+48.6%)

Margin of Safety

+48.6%

Fair Value

$31.75

Current Price

$13.96

$17.79 discount

UndervaluedFair: $31.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HDB5 strengths · Avg: 8.8/10
Operating MarginProfitability
34.8%10/10

Strong operational efficiency at 34.8%

Market CapQuality
$130.27B9/10

Large-cap with strong market position

Profit MarginProfitability
26.2%9/10

Keeps 26 of every $100 in revenue as profit

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
26.4%8/10

Revenue surging 26.4% year-over-year

VBNK5 strengths · Avg: 9.4/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
42.6%10/10

Strong operational efficiency at 42.6%

Revenue GrowthGrowth
33.6%10/10

Revenue surging 33.6% year-over-year

Profit MarginProfitability
24.3%9/10

Keeps 24 of every $100 in revenue as profit

EPS GrowthGrowth
23.7%8/10

Earnings expanding 23.7% YoY

Areas to Watch

HDB3 concerns · Avg: 2.7/10
Debt/EquityHealth
1.093/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
-0.142/10

Distress zone — elevated risk

VBNK2 concerns · Avg: 3.0/10
Market CapQuality
$443.52M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : HDB

The strongest argument for HDB centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 26.2% and operating margin at 34.8%. Revenue growth of 26.4% demonstrates continued momentum.

Bull Case : VBNK

The strongest argument for VBNK centers on Price/Book, Operating Margin, Revenue Growth. Profitability is solid with margins at 24.3% and operating margin at 42.6%. Revenue growth of 33.6% demonstrates continued momentum.

Bear Case : HDB

The primary concerns for HDB are Debt/Equity, Piotroski F-Score, Altman Z-Score.

Bear Case : VBNK

The primary concerns for VBNK are Market Cap, Return on Equity.

Key Dynamics to Monitor

VBNK carries more volatility with a beta of 0.98 — expect wider price swings.

VBNK is growing revenue faster at 33.6% — sustainability is the question.

Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HDB scores higher overall (78/100 vs 67/100), backed by strong 26.2% margins and 26.4% revenue growth. VBNK offers better value entry with a 48.6% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

HDFC Bank Limited ADR

FINANCIAL SERVICES · BANKS - REGIONAL · USA

HDFC Bank Limited offers various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong and Dubai. The company is headquartered in Mumbai, India.

Visit Website →

VersaBank

FINANCIAL SERVICES · BANKS - REGIONAL · USA

VersaBank (VBNK) is a leading digital bank based in London, Ontario, distinguished by its innovative approach to banking through advanced technology solutions. The bank specializes in commercial and residential lending, leveraging a robust cloud-based infrastructure that enables cost-effective operations and a secure banking experience for its clients. With a strong emphasis on cybersecurity, VersaBank is positioned to capitalize on the ongoing digital transformation in the financial services sector, adapting to evolving consumer demands and enhancing its comprehensive suite of financial products. As a pioneer in the Canadian digital banking landscape, VersaBank is well-equipped to navigate the complexities of modern finance and seize emerging market opportunities.

Want to dig deeper into these stocks?