HANG SENG Bk Lt/S (NYSE: BMA) and Banco Macro SA ADR Class B (NYSE:BMA) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Insider and Institutional Ownership

0.0% of HANG SENG Bk Lt/S shares are owned by institutional investors. Comparatively, 24.9% of Banco Macro SA ADR Class B shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

HANG SENG Bk Lt/S has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Banco Macro SA ADR Class B has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Dividends

HANG SENG Bk Lt/S pays an annual dividend of $0.58 per share and has a dividend yield of 2.2%. Banco Macro SA ADR Class B pays an annual dividend of $2.23 per share and has a dividend yield of 5.2%. HANG SENG Bk Lt/S pays out 43.9% of its earnings in the form of a dividend. Banco Macro SA ADR Class B pays out 25.8% 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. Banco Macro SA ADR Class B is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares HANG SENG Bk Lt/S and Banco Macro SA ADR Class B’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HANG SENG Bk Lt/S $10.17 billion 4.85 $2.57 billion $1.32 19.54
Banco Macro SA ADR Class B $2.21 billion 1.27 $567.08 million $8.65 4.94

HANG SENG Bk Lt/S has higher revenue and earnings than Banco Macro SA ADR Class B. Banco Macro SA ADR Class B is trading at a lower price-to-earnings ratio than HANG SENG Bk Lt/S, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares HANG SENG Bk Lt/S and Banco Macro SA ADR Class B’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HANG SENG Bk Lt/S N/A N/A N/A
Banco Macro SA ADR Class B 25.56% 26.38% 5.20%

Analyst Ratings

This is a summary of recent ratings and recommmendations for HANG SENG Bk Lt/S and Banco Macro SA ADR Class B, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HANG SENG Bk Lt/S 0 0 0 0 N/A
Banco Macro SA ADR Class B 1 3 2 0 2.17

Banco Macro SA ADR Class B has a consensus price target of $81.85, indicating a potential upside of 91.42%. Given Banco Macro SA ADR Class B’s higher probable upside, analysts clearly believe Banco Macro SA ADR Class B is more favorable than HANG SENG Bk Lt/S.

Summary

Banco Macro SA ADR Class B beats HANG SENG Bk Lt/S on 10 of the 14 factors compared between the two stocks.

About HANG SENG Bk Lt/S

Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprise, and institutional customers in Hong Kong, Mainland China, and internationally. It operates through four segments: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Other. The company offers personal banking services, including current and savings accounts, mortgages and personal loans, credit cards, and insurance and wealth management services, as well as consumer lending services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment, and corporate wealth management services, as well as general banking, interest rate, money market, structured, derivative products, etc. In addition, the company offers trustee, nominee, retirement benefit and life assurance, fund management, stock broking, and property management services, as well as engages in the compilation and dissemination of the Hang Seng share index. As of March 12, 2018, it operated 270 service outlets in Hong Kong; branches in Macau and Singapore; and a representative office in Taipei. Hang Seng Bank Limited, through its subsidiary, Hang Seng Bank (China) Limited, operates a mainland China network with outlets in the Pearl River delta, the Yangtze River delta, the Bohai Rim region, and Midwest China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited is a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.

About Banco Macro SA ADR Class B

Banco Macro S.A. provides various banking products and services to individuals and corporate customers in Argentina. It offers various retail products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines (ATMs), and money transfers. The company also provides personal loans, document discounts, mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services that include deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services. Further, the company provides trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; transaction services, such as collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; and information services, such as Datanet and Interpymes services to corporate customers. As of December 31, 2017, it operated through a network of 445 branches, 1,443 ATMs, 912 self-service terminals, and service points. Banco Macro S.A. also offers Internet banking services. The company was incorporated in 1988 and is headquartered in Buenos Aires, Argentina.

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