Comparing Galicia Financial Group (GGAL) and Grupo Supervielle (SUPV)

Galicia Financial Group (NASDAQ: GGAL) and Grupo Supervielle (NYSE:SUPV) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Risk & Volatility

Galicia Financial Group has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Grupo Supervielle has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Dividends

Galicia Financial Group pays an annual dividend of $0.11 per share and has a dividend yield of 0.2%. Grupo Supervielle pays an annual dividend of $0.05 per share and has a dividend yield of 0.2%. Galicia Financial Group pays out 3.5% of its earnings in the form of a dividend. Grupo Supervielle pays out 2.7% 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. Grupo Supervielle is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Galicia Financial Group and Grupo Supervielle’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Galicia Financial Group $2.49 billion 3.38 $407.41 million $3.14 20.61
Grupo Supervielle $1.40 billion 1.50 $147.19 million $1.88 15.29

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

Analyst Ratings

This is a summary of current ratings and price targets for Galicia Financial Group and Grupo Supervielle, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Galicia Financial Group 1 1 3 0 2.40
Grupo Supervielle 0 0 3 0 3.00

Galicia Financial Group currently has a consensus target price of $100.00, suggesting a potential upside of 54.49%. Grupo Supervielle has a consensus target price of $26.33, suggesting a potential downside of 8.41%. Given Galicia Financial Group’s higher probable upside, analysts clearly believe Galicia Financial Group is more favorable than Grupo Supervielle.

Insider and Institutional Ownership

36.2% of Galicia Financial Group shares are held by institutional investors. Comparatively, 60.4% of Grupo Supervielle shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Galicia Financial Group and Grupo Supervielle’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Galicia Financial Group N/A N/A N/A
Grupo Supervielle 10.52% 21.55% 3.13%

About Galicia Financial Group

Grupo Financiero Galicia S.A., a financial services holding company, provides various financial products and services in Argentina. The company operates through Banking, Regional Credit Cards, CFA Personal Loans, Insurance, and Other Grupo Galicia Businesses segments. It offers corporate banking services to companies, and the agricultural and livestock sector; foreign trade transactions; corporate debt and securitization transactions; and e-banking services. The company also provides checking and savings accounts, credit and debit cards, payroll direct deposits, and other services to individuals, micro and smaller businesses, and small retailers and professionals; and financial investment alternatives, such as deposits, FIMA mutual funds, government and corporate securities, and shares and trusts. In addition, it offers personal, consumer, and payroll loans, as well as loans to public sector employees; time deposits; retirement and pension payment services; life insurance, including employee benefit plans and credit related insurance; property and casualty insurance products, such as home and ATM theft insurance; and insurance brokerage services, as well as issues, operates, and processes credit cards. Further, the company issues deposit certificates and warrants to the agricultural, industrial, and agro-industrial sectors, as well as exporters and retailers. As of December 31, 2016, it had 279 full service banking branches; and 1,872 ATMs and self-service terminals. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.

About Grupo Supervielle

Grupo Supervielle S.A., a financial services holding company, provides banking products and services in Argentina. The company operates through Retail Banking, Corporate Banking, Treasury, Consumer Finance, Insurance, and Asset Management & Other Services segments. It accepts deposit accounts; and offers personal loans, foreign trade finance, and loans to the middle and lower-middle-income sectors. The company also offers credit cards; insurance and mutual fund products; and factoring, leasing, cash management, asset management, and microcredit financing services. In addition, it distributes treasury products, such as debt securities; and sells non-financial products and service. The company serves individuals, small and medium-sized enterprises, and medium to large-sized companies. It operates 325 access points, including 110 bank branches, 67 senior citizen service centers, 11 banking payment and collection centers, 66 CCF sales points, 61 consumer financing branches and other sale points, 9 microfinance branches, 491 ATMs, and 158 self-service terminals. Grupo Supervielle S.A. was founded in 1887 and is headquartered in Buenos Aires, Argentina.

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