Critical Survey: Banco Bilbao Viscaya Argentaria (NYSE:BBVA) versus Raiffeisen Bank International (OTCMKTS:RAIFY)

Banco Bilbao Viscaya Argentaria (NYSE:BBVA) and Raiffeisen Bank International (OTCMKTS:RAIFY) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Risk and Volatility

Banco Bilbao Viscaya Argentaria has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Raiffeisen Bank International has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Dividends

Banco Bilbao Viscaya Argentaria pays an annual dividend of $0.67 per share and has a dividend yield of 2.6%. Raiffeisen Bank International pays an annual dividend of $0.27 per share and has a dividend yield of 1.7%. Banco Bilbao Viscaya Argentaria pays out 30.5% of its earnings in the form of a dividend. Raiffeisen Bank International pays out 12.9% 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.

Profitability

This table compares Banco Bilbao Viscaya Argentaria and Raiffeisen Bank International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bilbao Viscaya Argentaria	27.75%	18.05%	1.27%
Raiffeisen Bank International	19.31%	10.94%	1.16%

Earnings and Valuation

This table compares Banco Bilbao Viscaya Argentaria and Raiffeisen Bank International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bilbao Viscaya Argentaria	$42.70 billion	3.41	$11.89 billion	$2.20	11.86
Raiffeisen Bank International	$14.76 billion	1.40	$1.55 billion	$2.10	7.49

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

Analyst Recommendations

This is a summary of current ratings for Banco Bilbao Viscaya Argentaria and Raiffeisen Bank International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bilbao Viscaya Argentaria	1	8	4	1	2.36
Raiffeisen Bank International	0	0	0	1	4.00

Insider and Institutional Ownership

3.0% of Banco Bilbao Viscaya Argentaria shares are held by institutional investors. 0.0% of Banco Bilbao Viscaya Argentaria shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Banco Bilbao Viscaya Argentaria beats Raiffeisen Bank International on 12 of the 15 factors compared between the two stocks.

About Banco Bilbao Viscaya Argentaria

Banco Bilbao Vizcaya Argentaria, S.A. provides retail banking, wholesale banking, and asset management services in the United States, Spain, Mexico, Turkey, South America, and internationally. The company offers savings account, demand deposits, and time deposits; and loan products, such as residential mortgages, other households, credit card loans, loans to enterprises and public sector, as well as consumer finance. It provides insurance and asset management business, including corporate, commercial, SME, payment systems, retail, private and investment banking, pension and life insurance, leasing, factoring, and brokerage. The company provides its products through online and mobile channels. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.

About Raiffeisen Bank International

Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.