Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México (NYSE:BSMX) and The Bank of N.T. Butterfield & Son (NYSE:NTB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Profitability
This table compares Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México and The Bank of N.T. Butterfield & Son's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | 13.83% | 13.40% | 1.12% |
| The Bank of N.T. Butterfield & Son | 27.50% | 16.10% | 1.18% |
Volatility & Risk
Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, The Bank of N.T. Butterfield & Son has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.
Institutional & 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, 63.5% of The Bank of N.T. Butterfield & Son 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.
Analyst Ratings
This is a summary of current ratings and recommmendations for Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México and The Bank of N.T. Butterfield & Son, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | 1 | 2 | 2 | 0 | 2.20 |
| The Bank of N.T. Butterfield & Son | 0 | 2 | 2 | 0 | 2.50 |
Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México presently has a consensus target price of $7.00, suggesting a potential upside of 47.68%. The Bank of N.T. Butterfield & Son has a consensus target price of $27.75, suggesting a potential downside of 23.95%. Given Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México's higher possible upside, equities research analysts clearly believe Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México is more favorable than The Bank of N.T. Butterfield & Son.
Valuation and Earnings
This table compares Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México and The Bank of N.T. Butterfield & Son's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | $7.35 billion | 0.88 | $1.06 billion | $0.82 | 5.78 |
| The Bank of N.T. Butterfield & Son | $532.60 million | 3.69 | $177.07 million | $3.69 | 9.89 |
Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México has higher revenue and earnings than The Bank of N.T. Butterfield & Son. Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México is trading at a lower price-to-earnings ratio than The Bank of N.T. Butterfield & Son, indicating that it is currently the more affordable of the two stocks.
Summary
The Bank of N.T. Butterfield & Son beats Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México on 9 of the 12 factors compared between the two stocks.
