Comparing ING Groep (ING) and Banco Macro SA ADR Class B (BMA)

ING Groep (NYSE: ING) and Banco Macro SA ADR Class B (NYSE:BMA) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Risk and Volatility

ING Groep has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Banco Macro SA ADR Class B has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Dividends

ING Groep pays an annual dividend of $0.65 per share and has a dividend yield of 4.4%. Banco Macro SA ADR Class B pays an annual dividend of $2.23 per share and has a dividend yield of 3.1%. ING Groep pays out 45.1% of its earnings in the form of a dividend. Banco Macro SA ADR Class B pays out 25.8% 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. ING Groep has raised its dividend for 2 consecutive years. ING Groep is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares ING Groep and Banco Macro SA ADR Class B’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ING Groep 28.03% 10.61% 0.61%
Banco Macro SA ADR Class B 21.88% 25.77% 4.76%

Institutional & Insider Ownership

3.6% of ING Groep shares are held by institutional investors. Comparatively, 28.3% of Banco Macro SA ADR Class B shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares ING Groep and Banco Macro SA ADR Class B’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ING Groep $20.00 billion 2.87 $6.18 billion $1.44 10.27
Banco Macro SA ADR Class B $2.21 billion 2.14 $567.08 million $8.65 8.29

ING Groep has higher revenue and earnings than Banco Macro SA ADR Class B. Banco Macro SA ADR Class B is trading at a lower price-to-earnings ratio than ING Groep, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ING Groep and Banco Macro SA ADR Class B, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ING Groep 0 0 3 0 3.00
Banco Macro SA ADR Class B 0 1 5 0 2.83

Banco Macro SA ADR Class B has a consensus target price of $108.85, indicating a potential upside of 51.73%. Given Banco Macro SA ADR Class B’s higher probable upside, analysts clearly believe Banco Macro SA ADR Class B is more favorable than ING Groep.

Summary

ING Groep beats Banco Macro SA ADR Class B on 9 of the 16 factors compared between the two stocks.

About ING Groep

ING Groep N.V., a financial institution, provides various banking products and services to individuals, small and medium-sized enterprises, and mid-corporates. It operates in Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking segments. The company accepts various deposits, such as current and savings accounts; and offers business lending products, as well as consumer lending products, such as residential mortgage loans, term loans, and revolver and personal loans. It also provides mortgage, payment, savings, investment, and secured and unsecured lending products and services. In addition, the company offers specialized lending, corporate finance, and debt and equity markets solutions, as well as working capital, cash management, and trade and treasury services; and financial market, trade finance, overdraft, and foreign exchange transaction services. The company operates in the Netherlands, Belgium, North America, Latin America, Asia, Australia, and rest of Europe. ING Groep N.V. was founded in 1991 and is headquartered in Amsterdam, the Netherlands.

About Banco Macro SA ADR Class B

Banco Macro S.A. provides various banking products and services to individuals and corporate customers in Argentina. It offers various retail products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines (ATMs), and money transfers. The company also provides personal loans, document discounts, mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services that include deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services. Further, the company provides trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; transaction services, such as collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; and information services, such as Datanet and Interpymes services to corporate customers. As of December 31, 2016, it operated through a network of 444 branches, 1,395 ATMs, 920 self-service terminals, and service points. Banco Macro S.A. also offers Internet banking services. The company was incorporated in 1988 and is headquartered in Buenos Aires, Argentina.

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