Head to Head Contrast: Woori Bank (WF) vs. Banco Macro (BMA)

Woori Bank (NYSE:WF) and Banco Macro (NYSE:BMA) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Woori Bank and Banco Macro, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Woori Bank 0 0 1 0 3.00
Banco Macro 1 2 2 0 2.20

Banco Macro has a consensus price target of $50.00, indicating a potential upside of 10.57%. Given Banco Macro’s higher probable upside, analysts plainly believe Banco Macro is more favorable than Woori Bank.

Profitability

This table compares Woori Bank and Banco Macro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Woori Bank 19.62% 9.70% 0.63%
Banco Macro 24.63% 27.18% 5.19%

Risk and Volatility

Woori Bank has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Banco Macro has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Institutional and Insider Ownership

0.6% of Woori Bank shares are owned by institutional investors. Comparatively, 24.3% of Banco Macro shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Woori Bank and Banco Macro’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Woori Bank $8.94 billion 1.07 $1.42 billion $5.40 7.89
Banco Macro $2.21 billion 1.35 $567.08 million $8.65 5.23

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

Dividends

Woori Bank pays an annual dividend of $1.17 per share and has a dividend yield of 2.7%. Banco Macro pays an annual dividend of $2.23 per share and has a dividend yield of 4.9%. Woori Bank pays out 21.7% of its earnings in the form of a dividend. Banco Macro 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.

Summary

Banco Macro beats Woori Bank on 9 of the 15 factors compared between the two stocks.

About Woori Bank

Woori Bank engages in the provision of personal and commercial banking services. It operates through the following segments: Consumer Banking, Corporate Banking, Investment Banking, Capital Markets, Credit Cards, and Other Operations. The Consumer Banking segment consists of lending to and taking deposits from its retail customers. The Corporate Banking segment provides commercial banking services to large corporate customers including government-owned enterprises and small- and medium-sized enterprises. The Investment Banking segment offers project finance and financial advisory services. The Capital Markets segment includes securities investment and trading, derivatives trading, asset securitization services, and investment banking. The Credit Cards segment comprises of Woori, BC Card, and Visa brands. The Other Operations segment manages credit management and collection department, treasury operations, including transactions of available-for-sale securities and financing among financial institutions. The compan ywas founded on January 30, 1899 and is headquartered in Seoul, South Korea.

About Banco Macro

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, 2017, it operated through a network of 445 branches, 1,443 ATMs, 912 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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