Head to Head Survey: Banco Santander Brasil (BSBR) and Grupo Financiero Galicia (GGAL)

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Banco Santander Brasil (NYSE:BSBR) and Grupo Financiero Galicia (NASDAQ:GGAL) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Dividends

Banco Santander Brasil pays an annual dividend of $0.25 per share and has a dividend yield of 2.0%. Grupo Financiero Galicia pays an annual dividend of $0.36 per share and has a dividend yield of 1.2%. Banco Santander Brasil pays out 34.2% of its earnings in the form of a dividend. Grupo Financiero Galicia has increased its dividend for 5 consecutive years.

Profitability

This table compares Banco Santander Brasil and Grupo Financiero Galicia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander Brasil 14.40% 13.79% 1.78%
Grupo Financiero Galicia N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Banco Santander Brasil and Grupo Financiero Galicia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander Brasil 0 5 0 0 2.00
Grupo Financiero Galicia 1 1 1 0 2.00

Banco Santander Brasil currently has a consensus target price of $12.00, indicating a potential downside of 2.68%. Given Banco Santander Brasil’s higher probable upside, equities research analysts clearly believe Banco Santander Brasil is more favorable than Grupo Financiero Galicia.

Institutional & Insider Ownership

1.1% of Banco Santander Brasil shares are owned by institutional investors. Comparatively, 25.0% of Grupo Financiero Galicia shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Banco Santander Brasil has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Grupo Financiero Galicia has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Valuation and Earnings

This table compares Banco Santander Brasil and Grupo Financiero Galicia’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Santander Brasil $21.36 billion 2.16 $3.44 billion $0.73 16.89
Grupo Financiero Galicia $4.19 billion 1.00 $503.09 million N/A N/A

Banco Santander Brasil has higher revenue and earnings than Grupo Financiero Galicia.

Summary

Banco Santander Brasil beats Grupo Financiero Galicia on 8 of the 13 factors compared between the two stocks.

Banco Santander Brasil Company Profile

Banco Santander (Brasil) S.A. provides banking products and services in Brazil and internationally. The company operates in two segments, Commercial Banking and Global Wholesale Banking. It offers savings and investment products, annuities, loans and advances, mortgage loans, credit cards, pension plans, and social securities, as well as leasing and foreign exchange services. The company also provides payment, securities and insurance brokerage, capitalization, buying club management, securitization, credit and recovery management, resource management, and other services. Banco Santander (Brasil) S.A. was incorporated in 1985 and is headquartered in São Paulo, Brazil.

Grupo Financiero Galicia Company Profile

Grupo Financiero Galicia S.A., a financial services holding company, provides various financial products and services in Argentina. The company operates through Banking, Regional Credit Cards, Insurance, and Other Grupo Galicia Businesses segments. It offers corporate banking services to companies; credit and debit cards, loans, and financing advice to various agricultural-sector clients; foreign trade transaction services; and e-banking services. The company also provides checking and savings accounts, credit and debit cards, payroll direct deposits, and other services to individuals, businesses, retailers, and professionals; and financial investment alternatives, such as deposits, FIMA mutual funds, government and corporate securities, and shares and trusts. In addition, it offers time deposits; retirement insurance services; life insurance, including employee benefit plans and credit related insurance; property and casualty insurance products, such as home and ATM theft insurance; and insurance brokerage services, as well as issues, credit cards. Further, the company issues deposit certificates and warrants to the agricultural, industrial, and agro-industrial sectors, as well as exporters and retailers. As of December 31, 2017, it had 306 full service banking branches; and 1,982 ATMs and self-service terminals. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.

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