Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México (NYSE:BSMX) and Credicorp (NYSE:BAP) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.
Profitability
This table compares Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México and Credicorp's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | 13.83% | 13.40% | 1.12% |
Credicorp | 4.18% | 2.76% | 0.32% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México and Credicorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | 1 | 2 | 2 | 0 | 2.20 |
Credicorp | 1 | 8 | 2 | 0 | 2.09 |
Credicorp has a consensus target price of $164.8571, suggesting a potential upside of 16.89%. Given Credicorp's higher probable upside, analysts clearly believe Credicorp is more favorable than Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México.
Earnings & Valuation
This table compares Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México and Credicorp's gross 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 Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | $7.35 billion | 1.05 | $1.06 billion | $0.82 | 6.95 |
Credicorp | $4.96 billion | 2.27 | $1.28 billion | $15.94 | 8.85 |
Credicorp has lower revenue, but higher earnings than Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México. Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México is trading at a lower price-to-earnings ratio than Credicorp, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
10.4% of Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México shares are owned by institutional investors. Comparatively, 65.7% of Credicorp shares are owned by institutional investors. 15.9% of Credicorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Credicorp has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Summary
Credicorp beats Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México on 7 of the 13 factors compared between the two stocks.