Westamerica Bancorporation (NASDAQ:WABC) vs. Grupo Financiero Galicia (NASDAQ:GGAL) Critical Survey

Grupo Financiero Galicia (NASDAQ:GGAL) and Westamerica Bancorporation (NASDAQ:WABC) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Profitability

This table compares Grupo Financiero Galicia and Westamerica Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Financiero Galicia	N/A	N/A	N/A
Westamerica Bancorporation	41.63%	12.80%	1.89%

Valuation & Earnings

This table compares Grupo Financiero Galicia and Westamerica Bancorporation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Financiero Galicia	$10.56 billion	0.45	$170.02 million	$2.45	12.14
Westamerica Bancorporation	$271.77 million	5.05	$116.17 million	$4.64	12.82

Grupo Financiero Galicia has higher revenue and earnings than Westamerica Bancorporation. Grupo Financiero Galicia is trading at a lower price-to-earnings ratio than Westamerica Bancorporation, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Grupo Financiero Galicia has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Westamerica Bancorporation has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Grupo Financiero Galicia and Westamerica Bancorporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Financiero Galicia	1	3	1	0	2.00
Westamerica Bancorporation	0	1	1	0	2.50

Grupo Financiero Galicia presently has a consensus price target of $65.00, suggesting a potential upside of 118.49%. Westamerica Bancorporation has a consensus price target of $65.00, suggesting a potential upside of 9.30%. Given Grupo Financiero Galicia’s higher possible upside, analysts clearly believe Grupo Financiero Galicia is more favorable than Westamerica Bancorporation.

Dividends

Grupo Financiero Galicia pays an annual dividend of $0.57 per share and has a dividend yield of 1.9%. Westamerica Bancorporation pays an annual dividend of $1.92 per share and has a dividend yield of 3.2%. Grupo Financiero Galicia pays out 23.3% of its earnings in the form of a dividend. Westamerica Bancorporation pays out 41.4% 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. Westamerica Bancorporation has increased its dividend for 34 consecutive years. Westamerica Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

81.9% of Westamerica Bancorporation shares are owned by institutional investors. 5.9% of Westamerica Bancorporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Westamerica Bancorporation beats Grupo Financiero Galicia on 11 of the 16 factors compared between the two stocks.

About Grupo Financiero Galicia

Grupo Financiero Galicia is an Argentine financial services holding company with roots in Banco de Galicia y Buenos Aires, founded in 1905. The group operates primarily in Argentina through businesses serving individuals, companies and institutions. Its services include retail and commercial banking, lending, payments, insurance, investment and asset-management products, and brokerage services. The group also offers digital financial services, including through its Naranja X platform. Grupo Financiero Galicia’s operations are focused on the Argentine market, where it serves customers through a combination of physical branches and digital channels.

About Westamerica Bancorporation

Westamerica Bancorporation is a bank holding company headquartered in San Rafael, California. Its principal subsidiary, Westamerica Bank, provides banking services to individuals, businesses and public entities. The bank offers deposit accounts, certificates of deposit, commercial and consumer loans, and digital banking services. It also provides businesses with cash-management and other banking services. Westamerica Bank serves communities in Northern and Central California, including the San Francisco Bay Area and the Sacramento and Central Valleys.