Analyzing Westpac Banking (NYSE:WBK) and GRUPO FINANCIER/ADR (NYSE:GBOOY)

Westpac Banking (NYSE:WBK) and GRUPO FINANCIER/ADR (OTCMKTS:GBOOY) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Volatility and Risk

Westpac Banking has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, GRUPO FINANCIER/ADR has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Dividends

Westpac Banking pays an annual dividend of $1.09 per share and has a dividend yield of 6.6%. GRUPO FINANCIER/ADR pays an annual dividend of $1.42 per share and has a dividend yield of 5.5%. Westpac Banking pays out 82.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings and price targets for Westpac Banking and GRUPO FINANCIER/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westpac Banking 2 3 1 0 1.83
GRUPO FINANCIER/ADR 0 0 0 0 N/A

Profitability

This table compares Westpac Banking and GRUPO FINANCIER/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Westpac Banking N/A N/A N/A
GRUPO FINANCIER/ADR 18.02% 19.07% 2.11%

Insider and Institutional Ownership

0.6% of Westpac Banking shares are owned by institutional investors. Comparatively, 0.1% of GRUPO FINANCIER/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Westpac Banking and GRUPO FINANCIER/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Westpac Banking $24.94 billion 2.30 $4.77 billion $1.33 12.49
GRUPO FINANCIER/ADR $8.68 billion 1.72 $1.67 billion N/A N/A

Westpac Banking has higher revenue and earnings than GRUPO FINANCIER/ADR.

Summary

Westpac Banking beats GRUPO FINANCIER/ADR on 7 of the 12 factors compared between the two stocks.

About Westpac Banking

Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally. It operates through five divisions: Consumer Bank, Business Bank, BT Financial Group, Westpac Institutional Bank, and Westpac New Zealand. It offers everyday banking, savings, term deposit, moving to Australia, under 21 and student, business one, community solutions one, not-for-profit savings, and foreign currency accounts; term and farm management deposits; debit, credit, and travel money cards; home, personal, investment, small business, and commercial loans; and equipment, automotive, cash flow, property, insurance premium, corporate and structured finance, and trade and supply chain financing services. It also provides home and content, landlord, car, travel, boat, caravan and trailer, life, credit card and loan repayment, income protection, business, farm pack, person income, and business overheads insurance products; superannuation and retirement products; investment portfolios; instalment warrants; and trading, financial advisory, wealth, foreign currency exchange, international payment, cash flow management, international trade, and import and export services. In addition, it offers industry specific banking and treasury services; other services, such as emergency cash, online and telephone banking, ATMs, unclaimed money, travel center, margin lending, and banking services to migrants moving to Australia; and mobile wallets. Further, it provides capital advisory and fund management, transactional and private banking, and financial market services. It serves individuals; micro, small, and medium enterprises; and commercial, corporate, institutional, and government customers. The company was formerly known as Bank of New South Wales and changed its name to Westpac Banking Corporation in October 1982. The company was founded in 1817 and is headquartered in Sydney, Australia.

About GRUPO FINANCIER/ADR

Grupo Financiero Banorte, S.A.B. de C.V., through its subsidiaries, provides banking and financial products and services in Mexico. It offers deposits, which include demand deposits, term deposits, money market accounts, and investment funds; and credit products comprising credit cards, car loans, payroll loans, and mortgages. The company also provides services for banking, brokerage, warehousing, leasing, and factoring services, as well as Internet banking, mobile banking, and call center services. In addition, it engages in long term savings, insurance, and international banking businesses. The company operates through a network of approximately 1,148 branches, 7,911 ATMs, 26,131 correspondents, and 165,441 point of sale terminals. Grupo Financiero Banorte, S.A.B. de C.V. was founded in 1899 and is headquartered in Santa Fe, Mexico.

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