Banco Macro (NYSE:BMA) and Royal Bank of Scotland Group (NYSE:RBSPF) Financial Review

Banco Macro (NYSE:BMA) and Royal Bank of Scotland Group (OTCMKTS:RBSPF) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Banco Macro and Royal Bank of Scotland Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Macro 2 2 2 0 2.00
Royal Bank of Scotland Group 0 0 0 0 N/A

Banco Macro currently has a consensus target price of $58.00, suggesting a potential upside of 131.72%. Given Banco Macro’s higher possible upside, research analysts plainly believe Banco Macro is more favorable than Royal Bank of Scotland Group.

Earnings & Valuation

This table compares Banco Macro and Royal Bank of Scotland Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Macro $2.15 billion 0.78 -$24.89 million $7.82 3.20
Royal Bank of Scotland Group $20.84 billion 1.23 $2.79 billion N/A N/A

Royal Bank of Scotland Group has higher revenue and earnings than Banco Macro.

Volatility & Risk

Banco Macro has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Royal Bank of Scotland Group has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Institutional & Insider Ownership

28.0% of Banco Macro shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Banco Macro and Royal Bank of Scotland Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Macro 21.12% 35.96% 5.90%
Royal Bank of Scotland Group 17.89% 6.04% 0.40%

Dividends

Banco Macro pays an annual dividend of $4.36 per share and has a dividend yield of 17.4%. Royal Bank of Scotland Group does not pay a dividend. Banco Macro pays out 55.8% of its earnings in the form of a dividend. Banco Macro has raised its dividend for 2 consecutive years.

Summary

Banco Macro beats Royal Bank of Scotland Group on 8 of the 14 factors compared between the two stocks.

Banco Macro Company Profile

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.

Royal Bank of Scotland Group Company Profile

The Royal Bank of Scotland Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. It operates through Personal & Business Banking, Commercial & Private Banking, RBS International, and NatWest Markets segments. The company also offers wealth management, financial planning, investment management, asset finance, and offshore banking; and financing and risk solutions, as well as trading and flow sales services. The Royal Bank of Scotland Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.

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