Banco Santander Mexico Sa Instcn De (BSMX) vs. Royal Bank of Scotland Group (RBS) Head to Head Analysis

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Banco Santander Mexico Sa Instcn De (NYSE: RBS) and Royal Bank of Scotland Group (NYSE:RBS) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares Banco Santander Mexico Sa Instcn De and Royal Bank of Scotland Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander Mexico Sa Instcn De 16.47% 14.98% 1.44%
Royal Bank of Scotland Group 11.77% 7.04% 0.46%

Earnings and Valuation

This table compares Banco Santander Mexico Sa Instcn De and Royal Bank of Scotland Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Santander Mexico Sa Instcn De $6.23 billion 0.83 $939.07 million $0.69 11.23
Royal Bank of Scotland Group $19.56 billion 1.91 $1.78 billion $0.65 9.60

Royal Bank of Scotland Group has higher revenue and earnings than Banco Santander Mexico Sa Instcn De. Royal Bank of Scotland Group is trading at a lower price-to-earnings ratio than Banco Santander Mexico Sa Instcn De, indicating that it is currently the more affordable of the two stocks.

Dividends

Banco Santander Mexico Sa Instcn De pays an annual dividend of $0.37 per share and has a dividend yield of 4.8%. Royal Bank of Scotland Group does not pay a dividend. Banco Santander Mexico Sa Instcn De pays out 53.6% of its earnings in the form of a dividend.

Risk and Volatility

Banco Santander Mexico Sa Instcn De has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Royal Bank of Scotland Group has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

29.7% of Banco Santander Mexico Sa Instcn De shares are held by institutional investors. Comparatively, 0.5% of Royal Bank of Scotland Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Banco Santander Mexico Sa Instcn De and Royal Bank of Scotland Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander Mexico Sa Instcn De 0 1 3 0 2.75
Royal Bank of Scotland Group 0 7 6 0 2.46

Banco Santander Mexico Sa Instcn De currently has a consensus target price of $9.80, suggesting a potential upside of 26.45%. Given Banco Santander Mexico Sa Instcn De’s stronger consensus rating and higher probable upside, research analysts clearly believe Banco Santander Mexico Sa Instcn De is more favorable than Royal Bank of Scotland Group.

Summary

Banco Santander Mexico Sa Instcn De beats Royal Bank of Scotland Group on 10 of the 15 factors compared between the two stocks.

About Banco Santander Mexico Sa Instcn De

Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México provides various banking products and services in Mexico. The company operates through Retail Banking and Global Corporate Banking segments. It offers various deposit products, such as current accounts, savings accounts, and time deposits, as well as certificates of interbank deposits; and payroll loans, personal loans, credit cards, mortgages, and insurance brokerage services. The company also provides cash management, working capital solutions, and trade finance; structured credit and debt products, project finance, and asset based finance; financial and strategic advisory services for mergers and acquisition; solutions and services for investing and hedging; and Internet and mobile banking services. It serves individuals, private banking clients, small and medium-sized enterprises, government institutions, and corporate and institutional customers. As of December 31, 2017, it operated through a network of 1,375 offices; 7,323 ATMs; and 2,784 contact center positions. The company was formerly known as Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander and changed its name to Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México in September 2012. The company was founded in 1932 and is headquartered in Mexico City, Mexico. Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México is a subsidiary of Grupo Financiero Santander México, S.A. de C.V.

About Royal Bank of Scotland Group

Royal Bank of Scotland Group Plc engages in the provision of international banking and financial services. It operates through the following segments: Personal and Business Banking, Commercial and Private Banking, RBS International (RBSI), NatWest Markets, and Central Items and Other. The Personal and Business Banking segment consists of the United Kingdom Personal, Business Banking, and Ulster Bank RoI sub-segments.The Commercial and Private Banking segment covers the Commercial Banking, Private Banking, and RBS International Commercial Banking sub-segments, involved in serving retail, commercial, corporate, and financial institution customers. The RBSI serves retail, commercial, corporate and financial institution customers in Jersey, Guernsey, Isle of Man and Gibraltar and financial institution customers in Luxembourg and London. The NatWest Markets offers corporate and institutional customers global market access, providing them with trading, risk management, and financing solutions. The Central Items and Other segment includes corporate functions, such as RBS treasury, finance, risk management, compliance, legal, communications, and human resources. The company was founded on March 25, 1968 and is headquartered in Edinburgh, the United Kingdom.

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