INTL Fcstone (INTL) and Banco Latinoamericano de Comercio Exterior (NYSE:BLX) Head-To-Head Review

INTL Fcstone (NASDAQ: INTL) and Banco Latinoamericano de Comercio Exterior (NYSE:BLX) are both small-cap financials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

65.0% of INTL Fcstone shares are held by institutional investors. Comparatively, 15.8% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. 20.5% of INTL Fcstone shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

INTL Fcstone has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Banco Latinoamericano de Comercio Exterior has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.

Profitability

This table compares INTL Fcstone and Banco Latinoamericano de Comercio Exterior’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
INTL Fcstone 0.02% 1.41% 0.10%
Banco Latinoamericano de Comercio Exterior 29.97% 7.32% 1.11%

Earnings & Valuation

This table compares INTL Fcstone and Banco Latinoamericano de Comercio Exterior’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
INTL Fcstone $29.42 billion 0.03 $6.40 million $0.33 129.30
Banco Latinoamericano de Comercio Exterior $258.66 million 4.52 $87.04 million $1.90 15.63

Banco Latinoamericano de Comercio Exterior has lower revenue, but higher earnings than INTL Fcstone. Banco Latinoamericano de Comercio Exterior is trading at a lower price-to-earnings ratio than INTL Fcstone, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for INTL Fcstone and Banco Latinoamericano de Comercio Exterior, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
INTL Fcstone 0 0 0 0 N/A
Banco Latinoamericano de Comercio Exterior 1 2 0 0 1.67

Banco Latinoamericano de Comercio Exterior has a consensus target price of $27.50, indicating a potential downside of 7.38%. Given Banco Latinoamericano de Comercio Exterior’s higher possible upside, analysts plainly believe Banco Latinoamericano de Comercio Exterior is more favorable than INTL Fcstone.

Dividends

Banco Latinoamericano de Comercio Exterior pays an annual dividend of $1.54 per share and has a dividend yield of 5.2%. INTL Fcstone does not pay a dividend. Banco Latinoamericano de Comercio Exterior pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Banco Latinoamericano de Comercio Exterior beats INTL Fcstone on 8 of the 14 factors compared between the two stocks.

About INTL Fcstone

INTL Fcstone Inc. is a financial services company. The Company provides financial products, and advisory and execution service. The Company operates through five segments: Commercial Hedging, Global Payments, Securities, Physical Commodities, and Clearing and Execution Services (CES). The Commercial Hedging segment serves its commercial clients through its team of risk management consultants. The Global Payments segment provides global payment solutions to banks and commercial businesses, as well as charities and non-governmental organizations and government organizations. The Securities segment provides solutions that facilitate cross-border trading. The Physical Commodities segment consists of its physical precious metals trading and physical agricultural and energy commodity businesses. The CES segment seeks to provide clearing and execution of exchange-traded futures and options for the institutional and trader market segments.

About Banco Latinoamericano de Comercio Exterior

Banco Latinoamericano de Comercio Exterior, S.A. (the Bank) is a specialized multinational bank. The Bank is established to support the financing of trade and economic integration in Latin America and the Caribbean. The Company operates in two segments: Commercial and Treasury. The Bank’s Commercial segment incorporates all of the Bank’s financial intermediation and fees generated by the commercial portfolio activities, such as origination of bilateral and syndicated credits, short- and medium-term loans, acceptances and contingent credits. The Bank’s Treasury segment incorporates deposits in banks and all of the Bank’s trading assets, securities available-for-sale and held-to-maturity, and the balance of the investment funds. The Bank serves a range of sectors, including oil and gas, agribusiness, food processing and manufacturing. Its products and services are categorized into three main areas: Financial Intermediation Business, Structuring and Syndications Business and Treasury.

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