Intercorp Financial Services (NYSE:IFS) and Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México (NYSE:BSMX) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.
Earnings and Valuation
This table compares Intercorp Financial Services and Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Intercorp Financial Services | $1.39 billion | 2.17 | $431.95 million | $3.91 | 6.75 |
| Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | $7.35 billion | 1.04 | $1.06 billion | $0.82 | 6.88 |
Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México has higher revenue and earnings than Intercorp Financial Services. Intercorp Financial Services is trading at a lower price-to-earnings ratio than Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Intercorp Financial Services and Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Intercorp Financial Services | 8.64% | 16.98% | 1.84% |
| Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | 13.83% | 13.40% | 1.12% |
Institutional & Insider Ownership
6.6% of Intercorp Financial Services shares are held by institutional investors. Comparatively, 10.4% of Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Intercorp Financial Services and Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Intercorp Financial Services | 1 | 3 | 1 | 0 | 2.00 |
| Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | 1 | 4 | 2 | 0 | 2.14 |
Intercorp Financial Services presently has a consensus target price of $32.75, indicating a potential upside of 24.15%. Given Intercorp Financial Services' higher possible upside, equities analysts clearly believe Intercorp Financial Services is more favorable than Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México.
