Banco Santander Mexico Sa Instcn De (NYSE:BSMX) and GRUPO FINANCIER/ADR (OTCMKTS:GBOOY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares Banco Santander Mexico Sa Instcn De and GRUPO FINANCIER/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander Mexico Sa Instcn De 15.36% 16.23% 1.46%
GRUPO FINANCIER/ADR 17.69% 17.89% 1.96%

Dividends

Banco Santander Mexico Sa Instcn De pays an annual dividend of $0.37 per share and has a dividend yield of 6.1%. GRUPO FINANCIER/ADR pays an annual dividend of $0.82 per share and has a dividend yield of 3.4%. Banco Santander Mexico Sa Instcn De pays out 53.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Banco Santander Mexico Sa Instcn De and GRUPO FINANCIER/ADR’s gross 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 $6.23 billion 0.65 $989.93 million $0.69 8.86
GRUPO FINANCIER/ADR $6.80 billion 1.95 $1.27 billion N/A N/A

GRUPO FINANCIER/ADR has higher revenue and earnings than Banco Santander Mexico Sa Instcn De.

Risk & Volatility

Banco Santander Mexico Sa Instcn De has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, GRUPO FINANCIER/ADR has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

28.1% of Banco Santander Mexico Sa Instcn De shares are owned by institutional investors. Comparatively, 0.1% of GRUPO FINANCIER/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Banco Santander Mexico Sa Instcn De and GRUPO FINANCIER/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander Mexico Sa Instcn De 0 0 3 0 3.00
GRUPO FINANCIER/ADR 0 0 0 0 N/A

Banco Santander Mexico Sa Instcn De currently has a consensus price target of $9.00, suggesting a potential upside of 47.30%. Given Banco Santander Mexico Sa Instcn De’s higher possible upside, research analysts clearly believe Banco Santander Mexico Sa Instcn De is more favorable than GRUPO FINANCIER/ADR.

Summary

GRUPO FINANCIER/ADR beats Banco Santander Mexico Sa Instcn De on 7 of the 12 factors compared between the two stocks.

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.

About GRUPO FINANCIER/ADR

Grupo Financiero Banorte, S.A.B. de C.V., through its subsidiaries, provides banking and financial products and services in Mexico. It offers deposits, which include demand deposits, term deposits, money market accounts, and investment funds; and credit products comprising credit cards, car loans, payroll loans, and mortgages. The company also provides services for banking, brokerage, warehousing, leasing, and factoring services, as well as Internet banking, mobile banking, and call center services. In addition, it engages in long term savings, insurance, and international banking businesses. The company operates through a network of approximately 1,148 branches, 7,911 ATMs, 26,131 correspondents, and 165,441 point of sale terminals. Grupo Financiero Banorte, S.A.B. de C.V. was founded in 1899 and is headquartered in Santa Fe, Mexico.

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