Macro Bank (NYSE: BMA) and Allegiance Bancshares (NASDAQ:ABTX) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Dividends

Macro Bank pays an annual dividend of $0.75 per share and has a dividend yield of 0.6%. Allegiance Bancshares does not pay a dividend. Macro Bank pays out 10.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings for Macro Bank and Allegiance Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macro Bank 1 2 1 0 2.00
Allegiance Bancshares 0 1 2 0 2.67

Macro Bank presently has a consensus target price of $113.70, suggesting a potential downside of 13.86%. Allegiance Bancshares has a consensus target price of $41.67, suggesting a potential upside of 6.43%. Given Allegiance Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Allegiance Bancshares is more favorable than Macro Bank.

Insider & Institutional Ownership

28.0% of Macro Bank shares are held by institutional investors. Comparatively, 39.7% of Allegiance Bancshares shares are held by institutional investors. 13.9% of Allegiance Bancshares shares are held by insiders. 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.

Earnings & Valuation

This table compares Macro Bank and Allegiance Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Macro Bank $1.35 billion 6.44 $487.99 million $7.41 17.81
Allegiance Bancshares $94.17 million 5.47 $19.87 million $1.51 25.93

Macro Bank has higher revenue and earnings than Allegiance Bancshares. Macro Bank is trading at a lower price-to-earnings ratio than Allegiance Bancshares, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Macro Bank has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Allegiance Bancshares has a beta of 2.41, indicating that its stock price is 141% more volatile than the S&P 500.

Profitability

This table compares Macro Bank and Allegiance Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macro Bank 17.98% 27.55% 4.53%
Allegiance Bancshares 16.88% 6.99% 0.78%

About Macro Bank

Banco Macro SA is an Argnetina-based financial institution (the Bank) that offers traditional bank products and services to companies, including those operating in regional economies, as well as to individuals. In addition, the Bank performs certain transactions through its subsidiaries, including mainly Banco del Tucuman, Macro Bank Ltd, Macro Securities SA, Macro Fiducia SA and Macro Fondos SGFCI SA. It has approximately two categories of customers, such as retail customers, including individuals and entrepreneurs and corporate customers, which include small, medium and large companies and major corporations. In addition, it provides services to over four provincial governments. It provides its corporate customers with traditional banking products and services, such as deposits, lending (including overdraft facilities), check cashing advances and factoring, guaranteed loans and credit lines for financing foreign trade and cash management services.

About Allegiance Bancshares

Allegiance Bancshares, Inc. is a bank holding company. Through its subsidiary, Allegiance Bank (the Bank), the Company provides a range of commercial banking services primarily to Houston metropolitan area-based small to medium-sized businesses, professionals and individual customers. In addition to banking during normal business hours, the Company offers extended drive-in hours, automated teller machines (ATMs) and banking by telephone, mail and Internet. The Company also provides debit card services, cash management services and wire transfer services, and offers night depository, direct deposits, cashier’s checks, letters of credit and mobile deposits. It also offers safe deposit boxes, automated teller machines, drive-in services and round the clock depository facilities. The Company maintains an Internet banking Website that allows customers to obtain account balances and transfer funds among accounts.

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