Financial Survey: GRUPO FINANCIER/ADR (GBOOY) vs. Bancolombia (CIB)

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GRUPO FINANCIER/ADR (OTCMKTS:GBOOY) and Bancolombia (NYSE:CIB) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

GRUPO FINANCIER/ADR has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Bancolombia has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Profitability

This table compares GRUPO FINANCIER/ADR and Bancolombia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GRUPO FINANCIER/ADR 17.69% 17.89% 1.96%
Bancolombia 11.39% 8.42% 0.99%

Insider & Institutional Ownership

0.1% of GRUPO FINANCIER/ADR shares are held by institutional investors. Comparatively, 8.0% of Bancolombia shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for GRUPO FINANCIER/ADR and Bancolombia, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GRUPO FINANCIER/ADR 0 0 0 0 N/A
Bancolombia 1 4 1 0 2.00

Bancolombia has a consensus target price of $41.00, suggesting a potential downside of 8.89%. Given Bancolombia’s higher possible upside, analysts clearly believe Bancolombia is more favorable than GRUPO FINANCIER/ADR.

Valuation & Earnings

This table compares GRUPO FINANCIER/ADR and Bancolombia’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GRUPO FINANCIER/ADR $6.80 billion 2.23 $1.27 billion N/A N/A
Bancolombia $5.76 billion 1.88 $784.50 million $3.64 12.36

GRUPO FINANCIER/ADR has higher revenue and earnings than Bancolombia.

Dividends

GRUPO FINANCIER/ADR pays an annual dividend of $0.82 per share and has a dividend yield of 3.0%. Bancolombia pays an annual dividend of $1.18 per share and has a dividend yield of 2.6%. Bancolombia pays out 32.4% of its earnings in the form of a dividend. Bancolombia has raised its dividend for 2 consecutive years.

Summary

GRUPO FINANCIER/ADR beats Bancolombia on 9 of the 13 factors compared between the two stocks.

About GRUPO FINANCIER/ADR

Grupo Financiero Banorte, S.A.B. de C.V., through its subsidiaries, provides banking and financial products and services in Mexico. It offers deposits, which include demand deposits, term deposits, money market accounts, and investment funds; and credit products comprising credit cards, car loans, payroll loans, and mortgages. The company also provides services for banking, brokerage, warehousing, leasing, and factoring services, as well as Internet banking, mobile banking, and call center services. In addition, it engages in long term savings, insurance, and international banking businesses. The company operates through a network of approximately 1,148 branches, 7,911 ATMs, 26,131 correspondents, and 165,441 point of sale terminals. Grupo Financiero Banorte, S.A.B. de C.V. was founded in 1899 and is headquartered in Santa Fe, Mexico.

About Bancolombia

Bancolombia S.A. provides various banking products and services to individual, corporate, and government customers in Colombia, Latin America, and the Caribbean region. The company operates in nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, Off Shore, and All Other. It offers checking and savings accounts, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, overdrafts, and financing for industrial projects; mortgage banking and factoring services; and financial and operating leasing services. The company also provides capital market products, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services, including selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency transaction services; and life, auto, commercial, and homeowner's insurance products. Further, the company provides investment banking services comprising project and acquisition finance, debt and equity capital markets, principal investments, merger and acquisition, restructurings, and structured corporate lending; trust and asset management services, such as money market accounts, mutual and pension funds, private equity funds, payment trust, custody, and corporate trust; digital banking and revolving credit facility services. Additionally, it is involved in transportation, real estate brokerage, maintenance and remodeling, advertising and marketing, and outsourcing activities. The company operates 1,153 branches, 10,349 banking correspondents, and 590 mobile service spots; 227 kiosks; and 5,630 automatic teller machines. Bancolombia S.A. was founded in 1945 and is headquartered in Medellín, Colombia.

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