Head to Head Comparison: Bancolombia (NYSE:CIB) vs. HANG SENG BK LT/S (NYSE:HSNGY)

Bancolombia (NYSE:CIB) and HANG SENG BK LT/S (OTCMKTS:HSNGY) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Bancolombia and HANG SENG BK LT/S, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bancolombia 0 2 3 0 2.60
HANG SENG BK LT/S 0 0 2 0 3.00

Bancolombia currently has a consensus price target of $54.00, indicating a potential downside of 1.75%. Given Bancolombia’s higher possible upside, research analysts clearly believe Bancolombia is more favorable than HANG SENG BK LT/S.

Volatility and Risk

Bancolombia has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, HANG SENG BK LT/S has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Dividends

Bancolombia pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. HANG SENG BK LT/S pays an annual dividend of $0.63 per share and has a dividend yield of 2.8%. Bancolombia pays out 34.5% of its earnings in the form of a dividend. HANG SENG BK LT/S pays out 39.6% 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. Bancolombia has increased its dividend for 2 consecutive years.

Profitability

This table compares Bancolombia and HANG SENG BK LT/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bancolombia 17.06% 13.94% 1.67%
HANG SENG BK LT/S N/A N/A N/A

Institutional and Insider Ownership

7.2% of Bancolombia shares are owned by institutional investors. Comparatively, 0.0% of HANG SENG BK LT/S shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Bancolombia and HANG SENG BK LT/S’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bancolombia $6.03 billion 2.19 $797.66 million $3.48 15.79
HANG SENG BK LT/S $11.87 billion 3.64 $3.09 billion $1.59 14.21

HANG SENG BK LT/S has higher revenue and earnings than Bancolombia. HANG SENG BK LT/S is trading at a lower price-to-earnings ratio than Bancolombia, indicating that it is currently the more affordable of the two stocks.

Summary

Bancolombia beats HANG SENG BK LT/S on 10 of the 16 factors compared between the two stocks.

About Bancolombia

Bancolombia S.A. provides various banking products and services to individual, corporate, and government customers in Colombia, Latin America, and the Caribbean region. The company operates in nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, Off Shore, and All Other. It offers checking and savings accounts, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, overdrafts, and financing for industrial projects; mortgage banking and factoring services; and financial and operating leasing services. The company also provides capital market products, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services, including selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency transaction services; and life, auto, commercial, and homeowner's insurance products. Further, the company provides investment banking services comprising project and acquisition finance, debt and equity capital markets, principal investments, merger and acquisition, restructurings, and structured corporate lending; trust and asset management services, such as money market accounts, mutual and pension funds, private equity funds, payment trust, custody, and corporate trust; digital banking and revolving credit facility services. Additionally, it is involved in transportation, real estate brokerage, maintenance and remodeling, advertising and marketing, and outsourcing activities. The company operates 1,153 branches, 10,349 banking correspondents, and 590 mobile service spots; 227 kiosks; and 5,630 automatic teller machines. Bancolombia S.A. was founded in 1945 and is headquartered in Medellín, Colombia.

About HANG SENG BK LT/S

Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprise, and institutional customers in Hong Kong, Mainland China, and internationally. It operates through four segments: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Other. The company offers personal banking services, including current and savings accounts, mortgages and personal loans, credit cards, and insurance and wealth management services, as well as consumer lending services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment, and corporate wealth management services, as well as general banking, interest rate, money market, structured, derivative products, etc. In addition, the company offers trustee, nominee, retirement benefit and life assurance, fund management, stock broking, and property management services, as well as index compilation and licensing; fund raising and sales; and asset management services. It operates approximately 280 service outlets in Hong Kong; branches in Macau and Singapore; and a representative office in Taipei. Hang Seng Bank Limited, through its subsidiary, Hang Seng Bank (China) Limited, operates a mainland China network with outlets in the Pearl River delta, the Yangtze River delta, the Bohai Rim region, and Midwest China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited is a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.

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