Bankinter (OTCMKTS:BKNIY – Get Free Report) and BBVA Banco Frances (NYSE:BBAR – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Volatility and Risk
Bankinter has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, BBVA Banco Frances has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
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Profitability
This table compares Bankinter and BBVA Banco Frances’ net margins, return on equity and return on assets.
Earnings and Valuation
This table compares Bankinter and BBVA Banco Frances”s gross revenue, earnings per share and valuation.
Bankinter has higher revenue and earnings than BBVA Banco Frances. BBVA Banco Frances is trading at a lower price-to-earnings ratio than Bankinter, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for Bankinter and BBVA Banco Frances, as provided by MarketBeat.
BBVA Banco Frances has a consensus price target of $22.50, indicating a potential upside of 170.69%. Given BBVA Banco Frances’ stronger consensus rating and higher probable upside, analysts plainly believe BBVA Banco Frances is more favorable than Bankinter.
Dividends
Bankinter pays an annual dividend of $0.43 per share and has a dividend yield of 2.8%. BBVA Banco Frances pays an annual dividend of $0.27 per share and has a dividend yield of 3.2%. Bankinter pays out 35.2% of its earnings in the form of a dividend. BBVA Banco Frances pays out 20.1% 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. BBVA Banco Frances is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
BBVA Banco Frances beats Bankinter on 8 of the 13 factors compared between the two stocks.
About Bankinter
(Get Free Report)
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.
About BBVA Banco Frances
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Banco BBVA Argentina S.A. provides various banking products and services to individuals and companies in Argentina. The company provides retail banking products and services, such as checking and savings accounts, time deposits, credit cards financing, consumer and pledge loans, mortgages, insurance, and investment products to individuals; and small and medium-sized companies products and services, including financing products, factoring, checking accounts, time deposits, transactional and payroll services, insurance, and investment products to private-sector companies. It also provides corporate and investment banking products and services, such as global transaction services; global markets solutions comprising risk management and securities brokerage; long-term financing products, including project finance and syndicated loans; and corporate finance services comprising mergers and acquisitions, and capital markets advisory services to corporations and multinational companies. The company was formerly known as BBVA Banco Francés S.A. and changed its name to Banco BBVA Argentina S.A. in July 2019. Banco BBVA Argentina S.A. was incorporated in 1886 and is based in Buenos Aires, Argentina.