Analyzing Bankinter (OTCMKTS:BKNIY) & Banco Bilbao Viscaya Argentaria (NYSE:BBVA)

Banco Bilbao Viscaya Argentaria (NYSE:BBVA) and Bankinter (OTCMKTS:BKNIY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Risk and Volatility

Banco Bilbao Viscaya Argentaria has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Bankinter has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500.

Profitability

This table compares Banco Bilbao Viscaya Argentaria and Bankinter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bilbao Viscaya Argentaria	28.58%	17.07%	1.32%
Bankinter	21.53%	16.76%	0.81%

Institutional & Insider Ownership

3.0% of Banco Bilbao Viscaya Argentaria shares are held by institutional investors. 0.0% of Banco Bilbao Viscaya Argentaria shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Banco Bilbao Viscaya Argentaria pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Bankinter pays an annual dividend of $0.47 per share and has a dividend yield of 2.8%. Banco Bilbao Viscaya Argentaria pays out 31.4% of its earnings in the form of a dividend. Bankinter pays out 37.3% 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.

Valuation and Earnings

This table compares Banco Bilbao Viscaya Argentaria and Bankinter”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bilbao Viscaya Argentaria	$38.40 billion	3.56	$10.88 billion	$1.91	12.25
Bankinter	$5.44 billion	N/A	$1.03 billion	$1.26	13.25

Banco Bilbao Viscaya Argentaria has higher revenue and earnings than Bankinter. Banco Bilbao Viscaya Argentaria is trading at a lower price-to-earnings ratio than Bankinter, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Banco Bilbao Viscaya Argentaria and Bankinter, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bilbao Viscaya Argentaria	0	3	2	1	2.67
Bankinter	1	6	0	0	1.86

Summary

Banco Bilbao Viscaya Argentaria beats Bankinter on 13 of the 15 factors compared between the two stocks.

About Banco Bilbao Viscaya Argentaria

Banco Bilbao Vizcaya Argentaria, S.A. provides retail banking, wholesale banking, and asset management services in the United States, Spain, Mexico, Turkey, South America, and internationally. The company offers savings account, demand deposits, and time deposits; and loan products, such as residential mortgages, other households, credit card loans, loans to enterprises and public sector, as well as consumer finance. It provides insurance and asset management business, including corporate, commercial, SME, payment systems, retail, private and investment banking, pension and life insurance, leasing, factoring, and brokerage. The company provides its products through online and mobile channels. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.