Reviewing Grupo Supervielle (SUPV) & United Overseas Bank (UOVEY)

Grupo Supervielle (NYSE: SUPV) and United Overseas Bank (OTCMKTS:UOVEY) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

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This table compares Grupo Supervielle and United Overseas Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grupo Supervielle 10.52% 21.55% 3.13%
United Overseas Bank 27.23% 9.51% 0.94%

Volatility and Risk

Grupo Supervielle has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, United Overseas Bank has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Dividends

Grupo Supervielle pays an annual dividend of $0.05 per share and has a dividend yield of 0.2%. United Overseas Bank pays an annual dividend of $1.02 per share and has a dividend yield of 2.4%. Grupo Supervielle pays out 2.7% of its earnings in the form of a dividend. United Overseas Bank pays out 37.9% 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Grupo Supervielle and United Overseas Bank, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grupo Supervielle 0 0 3 0 3.00
United Overseas Bank 0 0 0 0 N/A

Grupo Supervielle currently has a consensus price target of $26.33, indicating a potential downside of 14.00%. Given Grupo Supervielle’s higher possible upside, equities analysts plainly believe Grupo Supervielle is more favorable than United Overseas Bank.

Insider and Institutional Ownership

60.4% of Grupo Supervielle shares are held by institutional investors. Comparatively, 0.4% of United Overseas Bank shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Grupo Supervielle and United Overseas Bank’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grupo Supervielle $1.40 billion 1.60 $147.19 million $1.88 16.29
United Overseas Bank $8.27 billion 4.33 $2.24 billion $2.69 16.01

United Overseas Bank has higher revenue and earnings than Grupo Supervielle. United Overseas Bank is trading at a lower price-to-earnings ratio than Grupo Supervielle, indicating that it is currently the more affordable of the two stocks.

About Grupo Supervielle

Grupo Supervielle SA is an Argentina-based holding company primarily engaged in the financial sector. The Company provides services through numerous subsidiaries, such as Banco Supervielle SA, that offers bank services, mainly to individuals and commercial customers; Cordial Compania Financiera SA, which focuses on credit card issuing, as well as providing consumer loans and insurance for Wal-Mart Argentina customers; Tarjeta Automatica SA, which issues and administrates credit cards; Cordial Microfinanzas SA, that offers financing for urban micro-enterprises; Supervielle Seguros SA, which sells insurance products; Supervielle Asset Management Sociedad Gerente de FCI SA, which manages investment funds, and Espacio Cordial Servicios SA, that distributes audio and video equipment, computers, home appliance and air conditioning units, among others. The Company operates in the domestic market.

About United Overseas Bank

United Overseas Bank Limited provides financial products and services. The company's Group Retail segment provides deposits, insurance, card, wealth management, investment, and loan and trade financing products for personal and small enterprise customers. Its Group Wholesale Banking segment provides financing, trade, cash management, capital markets solutions, and advisory and treasury products and services. The company's Global Markets segment offers foreign exchange, interest rate, credit, commodities, equities, and structured investment products; and manages funds and liquidity. Its Other segment provides investment management, property, and insurance services. The company has a network of approximately 500 offices in 19 countries and territories in the Asia Pacific, Europe, and North America. The company was formerly known as United Chinese Bank and changed its name to United Overseas Bank Limited in 1965. United Overseas Bank Limited was founded in 1935 and is headquartered in Singapore.

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