Grupo Financiero Galicia (NASDAQ:GGAL) and Banco Latinoamericano de Comercio Exterior, S.A (NYSE:BLX) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Profitability
This table compares Grupo Financiero Galicia and Banco Latinoamericano de Comercio Exterior, S.A's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Grupo Financiero Galicia | 15.60% | 20.17% | 3.36% |
| Banco Latinoamericano de Comercio Exterior, S.A | 31.53% | 6.85% | 1.04% |
Volatility & Risk
Grupo Financiero Galicia has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Banco Latinoamericano de Comercio Exterior, S.A has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Earnings & Valuation
This table compares Grupo Financiero Galicia and Banco Latinoamericano de Comercio Exterior, S.A's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Grupo Financiero Galicia | $2.12 billion | 0.49 | $490.76 million | $4.74 | 1.55 |
| Banco Latinoamericano de Comercio Exterior, S.A | $290.82 million | 2.03 | $86.05 million | N/A | N/A |
Grupo Financiero Galicia has higher revenue and earnings than Banco Latinoamericano de Comercio Exterior, S.A.
Dividends
Grupo Financiero Galicia pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Banco Latinoamericano de Comercio Exterior, S.A pays an annual dividend of $1.00 per share and has a dividend yield of 6.7%. Grupo Financiero Galicia pays out 0.8% of its earnings in the form of a dividend. Banco Latinoamericano de Comercio Exterior, S.A has increased its dividend for 1 consecutive years. Banco Latinoamericano de Comercio Exterior, S.A is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Grupo Financiero Galicia and Banco Latinoamericano de Comercio Exterior, S.A, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Grupo Financiero Galicia | 1 | 2 | 0 | 0 | 1.67 |
| Banco Latinoamericano de Comercio Exterior, S.A | 0 | 2 | 2 | 0 | 2.50 |
Grupo Financiero Galicia presently has a consensus target price of $8.50, suggesting a potential upside of 15.96%. Banco Latinoamericano de Comercio Exterior, S.A has a consensus target price of $43.50, suggesting a potential upside of 191.55%. Given Banco Latinoamericano de Comercio Exterior, S.A's stronger consensus rating and higher probable upside, analysts clearly believe Banco Latinoamericano de Comercio Exterior, S.A is more favorable than Grupo Financiero Galicia.
Insider & Institutional Ownership
8.0% of Grupo Financiero Galicia shares are held by institutional investors. Comparatively, 8.9% of Banco Latinoamericano de Comercio Exterior, S.A shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Banco Latinoamericano de Comercio Exterior, S.A beats Grupo Financiero Galicia on 10 of the 15 factors compared between the two stocks.
