Banco Macro (BMA) versus Its Competitors Critical Contrast

Banco Macro (NYSE: BMA) is one of 309 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Banco Macro to similar businesses based on the strength of its analyst recommendations, valuation, dividends, profitability, institutional ownership, earnings and risk.

Insider & Institutional Ownership

31.2% of Banco Macro shares are held by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are held by institutional investors. 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Banco Macro pays an annual dividend of $0.75 per share and has a dividend yield of 0.6%. Banco Macro pays out 9.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.9% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Banco Macro and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Banco Macro $2.51 billion $442.81 million 15.46
Banco Macro Competitors $5.50 billion $827.87 million 382.15

Banco Macro’s competitors have higher revenue and earnings than Banco Macro. Banco Macro is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Banco Macro has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Banco Macro’s competitors have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Banco Macro and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Macro 0 3 1 0 2.25
Banco Macro Competitors 2174 8490 8509 332 2.36

Banco Macro currently has a consensus target price of $113.70, indicating a potential downside of 5.97%. As a group, “Banks” companies have a potential downside of 6.26%. Given Banco Macro’s higher probable upside, analysts plainly believe Banco Macro is more favorable than its competitors.

Profitability

This table compares Banco Macro and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Macro 19.37% 26.26% 4.52%
Banco Macro Competitors 18.38% 8.24% 0.93%

Summary

Banco Macro competitors beat Banco Macro on 9 of the 15 factors compared.

About Banco Macro

Banco Macro SA is an Argnetina-based financial institution (the Bank) that offers traditional bank products and services to companies, including those operating in regional economies, as well as to individuals. In addition, the Bank performs certain transactions through its subsidiaries, including mainly Banco del Tucuman, Macro Bank Ltd, Macro Securities SA, Macro Fiducia SA and Macro Fondos SGFCI SA. It has approximately two categories of customers, such as retail customers, including individuals and entrepreneurs and corporate customers, which include small, medium and large companies and major corporations. In addition, it provides services to over four provincial governments. It provides its corporate customers with traditional banking products and services, such as deposits, lending (including overdraft facilities), check cashing advances and factoring, guaranteed loans and credit lines for financing foreign trade and cash management services.

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