Reviewing BBVA Banco Frances (NYSE:BBAR) & ICICI Bank (NYSE:IBN)

BBVA Banco Frances (NYSE:BBAR) and ICICI Bank (NYSE:IBN) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

This table compares BBVA Banco Frances and ICICI Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BBVA Banco Frances 27.94% 47.60% 6.00%
ICICI Bank 6.04% 4.21% 0.41%

Volatility and Risk

BBVA Banco Frances has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, ICICI Bank has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Insider and Institutional Ownership

12.0% of BBVA Banco Frances shares are owned by institutional investors. Comparatively, 20.2% of ICICI Bank shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BBVA Banco Frances and ICICI Bank, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BBVA Banco Frances 1 1 1 0 2.00
ICICI Bank 0 2 0 1 2.67

Earnings and Valuation

This table compares BBVA Banco Frances and ICICI Bank’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BBVA Banco Frances $1.63 billion 0.58 -$52.88 million ($0.19) -24.21
ICICI Bank $11.27 billion 4.20 $608.36 million $0.15 97.73

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

Dividends

BBVA Banco Frances pays an annual dividend of $0.26 per share and has a dividend yield of 5.7%. ICICI Bank pays an annual dividend of $0.03 per share and has a dividend yield of 0.2%. BBVA Banco Frances pays out -136.8% of its earnings in the form of a dividend. ICICI Bank pays out 20.0% 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. ICICI Bank has raised its dividend for 6 consecutive years. BBVA Banco Frances is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

ICICI Bank beats BBVA Banco Frances on 10 of the 16 factors compared between the two stocks.

About BBVA Banco Frances

BBVA Banco Francés S.A., together with its subsidiaries, provides financial services to small and medium enterprises, and individual customers in Spain, Mexico, South America, the United States, Turkey, and rest of Eurasia. The company offers current, checking, and savings accounts, as well as demand and time deposits. It also provides personal and auto loans, and mortgages; loans to the public sector and local financial institutions, and short-term loans to companies, as well as overdraft lines of credit, discounted instruments, real estate mortgage loans, collateral loans, consumer loans, credit card loans, pre-financing and export financing, and short-term placements in foreign banks. In addition, the company offers fire, mixed family and comprehensive, civil liability, theft, personal accidents, umbrella life, debtor balances, funeral services, and other insurance coverage products; investment fund and pension fund management services; and stock exchange brokerage services. Further, it provides financing for the acquisition of new and second-hand Peugeot and Citroën vehicles through pledge loans, receivables from financial leases, and other financial products and in supplying services associated to the purchase, maintenance, and insurance coverage of motor vehicles; and secured loans for the purchase of VW, Audi, and Ducati new or second hand vehicles, credit through operating leases, and other financial products and services, as well as engages in security trading, investment banking, and other authorized operations. As of December 31, 2017, it operated a network of 251 retail branches, 15 in-company branches, 1 points of sale, and 2 point of express support, 797 ATMs, 822 self-service terminals, a telephone banking, and Internet banking services. The company was formerly known as Banco Francés S.A. and changed its name to BBVA Banco Francés S.A. in October 2000. The company was founded in 1886 and is headquartered in Buenos Aires, the Republic of Argentina.

About ICICI Bank

ICICI Bank Limited, together with its subsidiaries, provides banking and financial services in India and internationally. It operates through Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, General Insurance, and Others segments. The company offers savings, salary, pension, current, and other accounts; and fixed, recurring, and security deposits. It also provides home, car, two wheeler, personal, gold, and commercial business loans, as well as loans against securities and other loans; business loans, such as working capital finance, term loans, collateral free loans, loans without financials, finance for importers and exporters, and secured loans for credit card swipes, as well as loans for new entities, and schools and colleges; and credit, debit, prepaid, travel, and corporate cards. In addition, the company offers life, health, travel, car, two wheeler, home, and student medical insurance products; pockets wallet; fixed income products; investment products, such as mutual funds, gold monetization schemes, and initial public offerings, as well as other online investment services; and farmer finance, tractor loans, and micro banking services, as well as other services to agri traders and processors, and agri corporates. Further, it provides portfolio management, trade, foreign exchange, locker, private and NRI banking, and cash management services; family wealth and demat accounts; commercial banking, investment banking, capital markets and custodial, project and technology finance, and institutional banking services, as well as Internet, mobile, and phone banking services. Additionally, the company offers securities investment, broking, trading, and underwriting services; and merchant banking, private equity/venture capital fund management, trusteeship, and pension fund management services. As of March 31, 2018, it had a network of 4,867 branches and 14,367 ATMs. ICICI Bank Limited was founded in 1955 and is based in Mumbai, India.

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