Head-To-Head Analysis: Banco Santander Mexico Sa Instcn De (NYSE:BSMX) & Woori Financial Group (NYSE:WF)

Banco Santander Mexico Sa Instcn De (NYSE:BSMX) and Woori Financial Group (NYSE:WF) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Volatility and Risk

Banco Santander Mexico Sa Instcn De has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Woori Financial Group has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Dividends

Banco Santander Mexico Sa Instcn De pays an annual dividend of $0.21 per share and has a dividend yield of 7.2%. Woori Financial Group pays an annual dividend of $1.44 per share and has a dividend yield of 7.5%. Banco Santander Mexico Sa Instcn De pays out 25.6% of its earnings in the form of a dividend. Woori Financial Group pays out 20.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Banco Santander Mexico Sa Instcn De has raised its dividend for 2 consecutive years and Woori Financial Group has raised its dividend for 2 consecutive years. Woori Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Banco Santander Mexico Sa Instcn De and Woori Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Santander Mexico Sa Instcn De $7.35 billion 0.54 $1.06 billion $0.82 3.57
Woori Financial Group $9.18 billion 0.50 $1.62 billion $6.96 2.74

Woori Financial Group has higher revenue and earnings than Banco Santander Mexico Sa Instcn De. Woori Financial Group is trading at a lower price-to-earnings ratio than Banco Santander Mexico Sa Instcn De, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

10.4% of Banco Santander Mexico Sa Instcn De shares are held by institutional investors. Comparatively, 1.1% of Woori Financial Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Banco Santander Mexico Sa Instcn De and Woori Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander Mexico Sa Instcn De 14.92% 15.62% 1.41%
Woori Financial Group 15.50% 7.44% 0.50%

Analyst Recommendations

This is a summary of current ratings for Banco Santander Mexico Sa Instcn De and Woori Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander Mexico Sa Instcn De 1 2 0 0 1.67
Woori Financial Group 0 2 0 0 2.00

Banco Santander Mexico Sa Instcn De currently has a consensus target price of $7.00, indicating a potential upside of 138.91%. Given Banco Santander Mexico Sa Instcn De’s higher possible upside, equities analysts clearly believe Banco Santander Mexico Sa Instcn De is more favorable than Woori Financial Group.

Banco Santander Mexico Sa Instcn De Company Profile

Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México provides various banking products and services in Mexico. The company operates through Retail Banking and Global Corporate Banking segments. It offers various deposit products, such as current accounts, savings accounts, and time deposits, as well as certificates of interbank deposits; and payroll loans, personal loans, credit cards, mortgages, and insurance brokerage services. The company also provides cash management, working capital solutions, and trade finance; structured credit and debt products, project finance, and asset based finance; financial and strategic advisory services for mergers and acquisition; solutions and services for investing and hedging; and Internet and mobile banking services. It serves individuals, private banking clients, small and medium-sized enterprises, government institutions, and corporate and institutional customers. As of December 31, 2017, it operated through a network of 1,375 offices; 7,323 ATMs; and 2,784 contact center positions. The company was formerly known as Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander and changed its name to Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México in September 2012. The company was founded in 1932 and is headquartered in Mexico City, Mexico. Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México is a subsidiary of Grupo Financiero Santander México, S.A. de C.V.

Woori Financial Group Company Profile

Woori Financial Group Inc. provides commercial banking products and services to retail and individual customers, and corporations. The company offers salary, fixed deposit, savings, and ordinary and business deposit products; and professional, deposit mortgage, apartment, and mortgage loans, as well as corporate operating, facility, and policy loans. It also provides inquiry and retirement pension, bulk and automatic transfer, cash management, and foreign direct investment services. In addition, the company offers foreign currency, specialized remittance, expat banking, foreign exchange inquiry, exchange limit information, foreign currency remittance information, and foreign currency deposit information services; and other products and services, including insurance, fund, and custody services, as well as banking management services. Further, it provides system software development and maintenance, finance, other credit finance, credit information, security investment, and other services. As of June 30, 2018, the company operated approximately 880 branches and offices in Korea, and 23 branches and offices internationally. Woori Financial Group Inc. was founded in 1899 and is headquartered in Seoul, South Korea.

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