BBVA Banco Frances (NYSE: NTB) and Bank of N.T. Butterfield & Son (NYSE:NTB) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
This is a breakdown of recent recommendations and price targets for BBVA Banco Frances and Bank of N.T. Butterfield & Son, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BBVA Banco Frances||0||1||1||0||2.50|
|Bank of N.T. Butterfield & Son||0||2||4||0||2.67|
Bank of N.T. Butterfield & Son has a consensus price target of $52.20, indicating a potential downside of 2.30%. Given Bank of N.T. Butterfield & Son’s stronger consensus rating and higher probable upside, analysts plainly believe Bank of N.T. Butterfield & Son is more favorable than BBVA Banco Frances.
Risk & Volatility
BBVA Banco Frances has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Bank of N.T. Butterfield & Son has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.
Institutional & Insider Ownership
15.8% of BBVA Banco Frances shares are held by institutional investors. Comparatively, 72.5% of Bank of N.T. Butterfield & Son shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
BBVA Banco Frances pays an annual dividend of $0.21 per share and has a dividend yield of 2.1%. Bank of N.T. Butterfield & Son pays an annual dividend of $0.70 per share and has a dividend yield of 1.3%. BBVA Banco Frances pays out 18.4% of its earnings in the form of a dividend. Bank of N.T. Butterfield & Son pays out 24.5% 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.
This table compares BBVA Banco Frances and Bank of N.T. Butterfield & Son’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BBVA Banco Frances||N/A||10.96%||1.24%|
|Bank of N.T. Butterfield & Son||35.22%||21.83%||1.66%|
Earnings & Valuation
This table compares BBVA Banco Frances and Bank of N.T. Butterfield & Son’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BBVA Banco Frances||$1.83 billion||1.11||$234.24 million||$1.14||8.68|
|Bank of N.T. Butterfield & Son||$468.15 million||6.24||$153.25 million||$2.86||18.68|
BBVA Banco Frances has higher revenue and earnings than Bank of N.T. Butterfield & Son. BBVA Banco Frances is trading at a lower price-to-earnings ratio than Bank of N.T. Butterfield & Son, indicating that it is currently the more affordable of the two stocks.
Bank of N.T. Butterfield & Son beats BBVA Banco Frances on 10 of the 15 factors compared between the two stocks.
About BBVA Banco Frances
BBVA Banco Francés S.A., together with its subsidiaries, provides financial services to small and medium enterprises, and individual customers in Spain, Mexico, South America, the United States, Turkey, and rest of Eurasia. The company offers current, checking, and savings accounts, as well as demand and time deposits. It also provides personal and auto loans, and mortgages; loans to the public sector and local financial institutions, and short-term loans to companies, as well as overdraft lines of credit, discounted instruments, real estate mortgage loans, collateral loans, consumer loans, credit card loans, pre-financing and export financing, and short-term placements in foreign banks. In addition, the company offers fire, mixed family and comprehensive, civil liability, theft, personal accidents, umbrella life, debtor balances, funeral services, and other insurance coverage products; investment fund and pension fund management services; and stock exchange brokerage services. Further, it provides financing for the acquisition of new and second-hand Peugeot and Citroën vehicles through pledge loans, receivables from financial leases, and other financial products and in supplying services associated to the purchase, maintenance, and insurance coverage of motor vehicles; and secured loans for the purchase of VW, Audi, and Ducati new or second hand vehicles, credit through operating leases, and other financial products and services, as well as engages in security trading, investment banking, and other authorized operations. As of December 31, 2017, it operated a network of 251 retail branches, 15 in-company branches, 1 points of sale, and 2 point of express support, 797 ATMs, 822 self-service terminals, a telephone banking, and Internet banking services. The company was formerly known as Banco Francés S.A. and changed its name to BBVA Banco Francés S.A. in October 2000. The company was founded in 1886 and is headquartered in Buenos Aires, the Republic of Argentina.
About Bank of N.T. Butterfield & Son
The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. It accepts retail and corporate checking, savings, term, and non-interest bearing deposits, as well as certificates of deposits. The company's lending portfolio includes residential mortgage lending, automobile financing, consumer financing, credit cards, overdraft facilities, commercial real estate lending, and commercial and industrial loans. In addition, it offers investment products and services; and cash and liquidity management, foreign exchange, custody administration, and settlement services. Further, the company provides personal and property/auto insurance products; letters of credit; and cash management, payroll, remote banking, money market, advisory, brokerage, trust, estate, company management, private banking, administered bank services, fiduciary, and ancillary services. Additionally, it offers debit cards; automated teller machines (ATMs); personal and business deposit, merchant acquiring, and mobile/online banking services. The company operates through offices in the Cayman Islands, Guernsey, the United Kingdom, The Bahamas, and Switzerland, as well as through four branch locations in Bermuda and three branch locations in the Cayman Islands. The Bank of N.T. Butterfield & Son Limited was founded in 1858 and is headquartered in Hamilton, Bermuda.
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