Washington Federal (WAFD) and Banco Bilbao Vizcaya Argentaria (BBVA) Head to Head Review

Washington Federal (NASDAQ: WAFD) and Banco Bilbao Vizcaya Argentaria (NYSE:BBVA) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Washington Federal and Banco Bilbao Vizcaya Argentaria, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Federal 0 4 0 0 2.00
Banco Bilbao Vizcaya Argentaria 1 1 2 0 2.25

Washington Federal currently has a consensus price target of $36.75, indicating a potential upside of 4.55%. Given Washington Federal’s higher possible upside, equities research analysts plainly believe Washington Federal is more favorable than Banco Bilbao Vizcaya Argentaria.

Profitability

This table compares Washington Federal and Banco Bilbao Vizcaya Argentaria’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Federal 30.20% 9.14% 1.21%
Banco Bilbao Vizcaya Argentaria 13.74% 8.63% 0.67%

Insider & Institutional Ownership

83.1% of Washington Federal shares are owned by institutional investors. Comparatively, 3.2% of Banco Bilbao Vizcaya Argentaria shares are owned by institutional investors. 1.1% of Washington Federal shares are owned by 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.

Valuation and Earnings

This table compares Washington Federal and Banco Bilbao Vizcaya Argentaria’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Washington Federal $601.13 million 5.03 $173.53 million $2.07 16.98
Banco Bilbao Vizcaya Argentaria $28.55 billion 2.01 $3.98 billion $0.64 13.67

Banco Bilbao Vizcaya Argentaria has higher revenue and earnings than Washington Federal. Banco Bilbao Vizcaya Argentaria is trading at a lower price-to-earnings ratio than Washington Federal, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Washington Federal has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Banco Bilbao Vizcaya Argentaria has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Dividends

Washington Federal pays an annual dividend of $0.68 per share and has a dividend yield of 1.9%. Banco Bilbao Vizcaya Argentaria pays an annual dividend of $0.34 per share and has a dividend yield of 3.9%. Washington Federal pays out 32.9% of its earnings in the form of a dividend. Banco Bilbao Vizcaya Argentaria pays out 53.1% 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. Washington Federal has raised its dividend for 6 consecutive years.

Summary

Washington Federal beats Banco Bilbao Vizcaya Argentaria on 12 of the 17 factors compared between the two stocks.

Washington Federal Company Profile

Washington Federal, Inc. is a bank holding company. The Company conducts its operations through a federally insured national bank subsidiary, Washington Federal, National Association (the Bank). The business of the Bank consists primarily of accepting deposits from the general public and investing these funds in loans of various types, including first lien mortgages on single-family dwellings, construction loans, land acquisition and development loans, loans on multi-family, commercial real estate and other income producing properties, home equity loans and business loans. As of September 30, 2016, Washington Federal had 238 branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. Through its subsidiaries, the Company is also engaged in real estate investment and insurance brokerage activities. The Bank offers various consumer checking account products, both interest bearing and non-interest bearing, and business checking accounts.

Banco Bilbao Vizcaya Argentaria Company Profile

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a diversified financial company engaged in retail banking, wholesale banking, asset management and private banking. Its segments include Banking Activity in Spain, Real Estate Activity in Spain, the United States Turkey, Mexico, South America and Rest of Eurasia. Its Banking Activity in Spain segment includes Retail Network in Spain, Corporate and Business Banking (CBB), and BBVA Seguros and Asset Management units in Spain. Its Real Estate Activity in Spain segment covers specialist management of real-estate assets in the country. In the United States it offers services through, BBVA Compass Bancshares Inc. and the BBVA New York branch. The Turkey segment represents its stake in the Turkish bank, Turkiye Garanti Bankasi A.S. It offers banking and insurance businesses in Mexico. In South America, it provides banking and insurance businesses. The Rest of Eurasia segment includes business activity in the rest of Europe and Asia.

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