Westpac Banking (NYSE:WBK) vs. Banco Bilbao Vizcaya Argentaria (NYSE:BBVA) Head to Head Survey

Westpac Banking (NYSE:WBK) and Banco Bilbao Vizcaya Argentaria (NYSE:BBVA) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Dividends

Westpac Banking pays an annual dividend of $0.55 per share and has a dividend yield of 4.5%. Banco Bilbao Vizcaya Argentaria pays an annual dividend of $0.28 per share and has a dividend yield of 9.1%. Westpac Banking pays out 41.4% of its earnings in the form of a dividend. Banco Bilbao Vizcaya Argentaria pays out 37.8% 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. Westpac Banking has increased its dividend for 2 consecutive years and Banco Bilbao Vizcaya Argentaria has increased its dividend for 7 consecutive years. Banco Bilbao Vizcaya Argentaria is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Westpac Banking and Banco Bilbao Vizcaya Argentaria’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Westpac Banking N/A N/A N/A
Banco Bilbao Vizcaya Argentaria 2.39% 7.36% 0.56%

Earnings and Valuation

This table compares Westpac Banking and Banco Bilbao Vizcaya Argentaria’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Westpac Banking $24.94 billion 1.68 $4.77 billion $1.33 9.14
Banco Bilbao Vizcaya Argentaria $27.49 billion 0.74 $3.93 billion $0.74 4.15

Westpac Banking has higher earnings, but lower revenue than Banco Bilbao Vizcaya Argentaria. Banco Bilbao Vizcaya Argentaria is trading at a lower price-to-earnings ratio than Westpac Banking, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Westpac Banking has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Banco Bilbao Vizcaya Argentaria has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Westpac Banking and Banco Bilbao Vizcaya Argentaria, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westpac Banking 2 1 3 0 2.17
Banco Bilbao Vizcaya Argentaria 0 6 4 0 2.40

Insider & Institutional Ownership

0.5% of Westpac Banking shares are held by institutional investors. Comparatively, 2.2% of Banco Bilbao Vizcaya Argentaria shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Banco Bilbao Vizcaya Argentaria beats Westpac Banking on 11 of the 14 factors compared between the two stocks.

About Westpac Banking

Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally. It operates through five divisions: Consumer Bank, Business Bank, BT Financial Group, Westpac Institutional Bank, and Westpac New Zealand. It offers everyday banking, savings, term deposit, moving to Australia, under 21 and student, business one, community solutions one, not-for-profit savings, and foreign currency accounts; term and farm management deposits; debit, credit, and travel money cards; home, personal, investment, small business, and commercial loans; and equipment, automotive, cash flow, property, insurance premium, corporate and structured finance, and trade and supply chain financing services. It also provides home and content, landlord, car, travel, boat, caravan and trailer, life, credit card and loan repayment, income protection, business, farm pack, person income, and business overheads insurance products; superannuation and retirement products; investment portfolios; instalment warrants; and trading, financial advisory, wealth, foreign currency exchange, international payment, cash flow management, international trade, and import and export services. In addition, it offers industry specific banking and treasury services; other services, such as emergency cash, online and telephone banking, ATMs, unclaimed money, travel center, margin lending, and banking services to migrants moving to Australia; and mobile wallets. Further, it provides capital advisory and fund management, transactional and private banking, and financial market services. It serves individuals; micro, small, and medium enterprises; and commercial, corporate, institutional, and government customers. The company was formerly known as Bank of New South Wales and changed its name to Westpac Banking Corporation in October 1982. The company was founded in 1817 and is headquartered in Sydney, Australia.

About Banco Bilbao Vizcaya Argentaria

Banco Bilbao Vizcaya Argentaria, S.A., together with its subsidiaries, provides retail and wholesale banking, asset management, and private banking services. The company accepts various deposits, such as current and savings accounts, term deposits, subordinated deposits, and other accounts. It also offers loan products; and foreclosed real-estate assets from residential mortgages and developers, as well as lending to developers. In addition, the company provides credit cards; and corporate and business banking, corporate and investment banking, and insurance. It operates in Spain, Mexico, South America, the United States, Turkey, Asia-Pacific, and rest of Europe. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.

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