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

Earnings and Valuation

This table compares BBVA Banco Frances and Banco Santander Mexico Sa Instcn De’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BBVA Banco Frances $1.83 billion 1.14 $234.24 million $1.14 8.95
Banco Santander Mexico Sa Instcn De $6.23 billion 0.83 $989.93 million $0.69 11.25

Banco Santander Mexico Sa Instcn De has higher revenue and earnings than BBVA Banco Frances. BBVA Banco Frances 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.

Dividends

BBVA Banco Frances pays an annual dividend of $0.21 per share and has a dividend yield of 2.1%. Banco Santander Mexico Sa Instcn De pays an annual dividend of $0.37 per share and has a dividend yield of 4.8%. BBVA Banco Frances pays out 18.4% of its earnings in the form of a dividend. Banco Santander Mexico Sa Instcn De pays out 53.6% 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.

Volatility & Risk

BBVA Banco Frances has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Banco Santander Mexico Sa Instcn De has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Institutional & Insider Ownership

15.5% of BBVA Banco Frances shares are held by institutional investors. Comparatively, 27.9% of Banco Santander Mexico Sa Instcn De shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
BBVA Banco Frances N/A 21.07% 2.67%
Banco Santander Mexico Sa Instcn De 16.49% 15.35% 1.41%

Analyst Recommendations

This is a summary of current recommendations and price targets for BBVA Banco Frances and Banco Santander Mexico Sa Instcn De, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BBVA Banco Frances 0 1 1 0 2.50
Banco Santander Mexico Sa Instcn De 0 0 3 0 3.00

Banco Santander Mexico Sa Instcn De has a consensus price target of $9.00, indicating a potential upside of 15.98%. Given Banco Santander Mexico Sa Instcn De’s stronger consensus rating and higher possible upside, analysts clearly believe Banco Santander Mexico Sa Instcn De is more favorable than BBVA Banco Frances.

Summary

Banco Santander Mexico Sa Instcn De beats BBVA Banco Frances on 10 of the 15 factors compared between the two stocks.

About BBVA Banco Frances

BBVA Banco Francés S.A., together with its subsidiaries, provides financial services to small and medium enterprises, and individual customers in Spain, Mexico, South America, the United States, Turkey, and rest of Eurasia. The company offers current, checking, and savings accounts, as well as demand and time deposits. It also provides personal and auto loans, and mortgages; loans to the public sector and local financial institutions, and short-term loans to companies, as well as overdraft lines of credit, discounted instruments, real estate mortgage loans, collateral loans, consumer loans, credit card loans, pre-financing and export financing, and short-term placements in foreign banks. In addition, the company offers fire, mixed family and comprehensive, civil liability, theft, personal accidents, umbrella life, debtor balances, funeral services, and other insurance coverage products; investment fund and pension fund management services; and stock exchange brokerage services. Further, it provides financing for the acquisition of new and second-hand Peugeot and Citroën vehicles through pledge loans, receivables from financial leases, and other financial products and in supplying services associated to the purchase, maintenance, and insurance coverage of motor vehicles; and secured loans for the purchase of VW, Audi, and Ducati new or second hand vehicles, credit through operating leases, and other financial products and services, as well as engages in security trading, investment banking, and other authorized operations. As of December 31, 2017, it operated a network of 251 retail branches, 15 in-company branches, 1 points of sale, and 2 point of express support, 797 ATMs, 822 self-service terminals, a telephone banking, and Internet banking services. The company was formerly known as Banco Francés S.A. and changed its name to BBVA Banco Francés S.A. in October 2000. The company was founded in 1886 and is headquartered in Buenos Aires, the Republic of Argentina.

About Banco Santander Mexico Sa Instcn De

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.

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