Banco Latinoamericano de Comercio Exterior, S.A (NYSE:BLX) and Grupo Financiero Galicia (NASDAQ:GGAL) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Analyst Ratings
This is a breakdown of current recommendations for Banco Latinoamericano de Comercio Exterior, S.A and Grupo Financiero Galicia, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Banco Latinoamericano de Comercio Exterior, S.A | 0 | 2 | 2 | 0 | 2.50 |
Grupo Financiero Galicia | 1 | 2 | 0 | 0 | 1.67 |
Banco Latinoamericano de Comercio Exterior, S.A currently has a consensus target price of $43.50, indicating a potential upside of 196.93%. Grupo Financiero Galicia has a consensus target price of $8.50, indicating a potential upside of 19.38%. Given Banco Latinoamericano de Comercio Exterior, S.A's stronger consensus rating and higher probable upside, research analysts plainly believe Banco Latinoamericano de Comercio Exterior, S.A is more favorable than Grupo Financiero Galicia.
Dividends
Banco Latinoamericano de Comercio Exterior, S.A pays an annual dividend of $1.00 per share and has a dividend yield of 6.8%. Grupo Financiero Galicia pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Grupo Financiero Galicia pays out 0.8% of its earnings in the form of a dividend. Banco Latinoamericano de Comercio Exterior, S.A has raised 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.
Earnings & Valuation
This table compares Banco Latinoamericano de Comercio Exterior, S.A and Grupo Financiero Galicia's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Banco Latinoamericano de Comercio Exterior, S.A | $290.82 million | 2.01 | $86.05 million | N/A | N/A |
Grupo Financiero Galicia | $2.12 billion | 0.48 | $490.76 million | $4.74 | 1.52 |
Grupo Financiero Galicia has higher revenue and earnings than Banco Latinoamericano de Comercio Exterior, S.A.
Risk & Volatility
Banco Latinoamericano de Comercio Exterior, S.A has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Grupo Financiero Galicia has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.
Profitability
This table compares Banco Latinoamericano de Comercio Exterior, S.A and Grupo Financiero Galicia's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Banco Latinoamericano de Comercio Exterior, S.A | 31.53% | 6.85% | 1.04% |
Grupo Financiero Galicia | 15.60% | 20.17% | 3.36% |
Insider and Institutional Ownership
8.9% of Banco Latinoamericano de Comercio Exterior, S.A shares are owned by institutional investors. Comparatively, 8.0% of Grupo Financiero Galicia shares are owned 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.