Critical Analysis: Banco Santander Mexico Sa Instcn De (NYSE:BSMX) vs. Banco Latinoamericano de Comercio Exterior, S.A (NYSE:BLX)

Banco Santander Mexico Sa Instcn De (NYSE:BSMX) and Banco Latinoamericano de Comercio Exterior, S.A (NYSE:BLX) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Profitability

This table compares Banco Santander Mexico Sa Instcn De and Banco Latinoamericano de Comercio Exterior, S.A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander Mexico Sa Instcn De 13.98% 13.98% 1.23%
Banco Latinoamericano de Comercio Exterior, S.A 30.22% 7.37% 1.09%

Volatility & Risk

Banco Santander Mexico Sa Instcn De has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Banco Latinoamericano de Comercio Exterior, S.A has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Insider and Institutional Ownership

10.2% of Banco Santander Mexico Sa Instcn De shares are held by institutional investors. Comparatively, 14.3% of Banco Latinoamericano de Comercio Exterior, S.A shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Banco Santander Mexico Sa Instcn De and Banco Latinoamericano de Comercio Exterior, S.A’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Santander Mexico Sa Instcn De $7.35 billion 0.67 $1.06 billion $0.82 4.44
Banco Latinoamericano de Comercio Exterior, S.A $290.82 million 1.82 $86.05 million N/A N/A

Banco Santander Mexico Sa Instcn De has higher revenue and earnings than Banco Latinoamericano de Comercio Exterior, S.A.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Banco Santander Mexico Sa Instcn De and Banco Latinoamericano de Comercio Exterior, S.A, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander Mexico Sa Instcn De 1 3 2 0 2.17
Banco Latinoamericano de Comercio Exterior, S.A 0 1 2 0 2.67

Banco Santander Mexico Sa Instcn De presently has a consensus price target of $7.00, suggesting a potential upside of 92.31%. Banco Latinoamericano de Comercio Exterior, S.A has a consensus price target of $34.25, suggesting a potential upside of 156.36%. Given Banco Latinoamericano de Comercio Exterior, S.A’s stronger consensus rating and higher possible upside, analysts plainly believe Banco Latinoamericano de Comercio Exterior, S.A is more favorable than Banco Santander Mexico Sa Instcn De.

Dividends

Banco Santander Mexico Sa Instcn De pays an annual dividend of $0.16 per share and has a dividend yield of 4.4%. Banco Latinoamericano de Comercio Exterior, S.A pays an annual dividend of $1.00 per share and has a dividend yield of 7.5%. Banco Santander Mexico Sa Instcn De pays out 19.5% of its earnings in the form of a dividend. Banco Latinoamericano de Comercio Exterior, S.A has raised its dividend for 1 consecutive years. Banco Latinoamericano de Comercio Exterior, S.A is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Banco Latinoamericano de Comercio Exterior, S.A beats Banco Santander Mexico Sa Instcn De on 10 of the 14 factors compared between the two stocks.

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.

Banco Latinoamericano de Comercio Exterior, S.A Company Profile

Banco Latinoamericano de Comercio Exterior, S.A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates through two segments, Commercial and Treasury. It offers short and medium-term bilateral, structured and syndicated credits, and loan commitments; letter of credit contingencies, such as issued and confirmed letters of credit, and stand-by letters of credit; and guarantees covering commercial risk and other assets. The company also provides treasury solutions. It primarily serves financial institutions, companies, and investors. The company was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S.A. in June 2009. Banco Latinoamericano de Comercio Exterior, S.A. was founded in 1977 and is headquartered in Panama City, the Republic of Panama.

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