Financial Contrast: Macro Bank (BMA) and Its Competitors

Macro Bank (NYSE:BMA) is one of 920 public companies in the “Banks” industry, but how does it compare to its rivals? We will compare Macro Bank to similar businesses based on the strength of its dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Dividends

Macro Bank pays an annual dividend of $3.67 per share and has a dividend yield of 5.9%. Macro Bank pays out 80.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 29.0% of their earnings in the form of a dividend. Macro Bank lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

47.7% of shares of all “Banks” companies are owned by institutional investors. 18.3% of Macro Bank shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Macro Bank and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Macro Bank	5.95%	8.65%	2.04%
Macro Bank Competitors	15.24%	9.38%	0.92%

Valuation & Earnings

This table compares Macro Bank and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Macro Bank	$4.72 billion	$231.60 million	13.51
Macro Bank Competitors	$37.75 billion	$2.41 billion	18.94

Macro Bank’s rivals have higher revenue and earnings than Macro Bank. Macro Bank is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Macro Bank and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macro Bank	1	1	5	1	2.75
Macro Bank Competitors	7444	30085	27632	1436	2.35

Macro Bank currently has a consensus price target of $101.25, suggesting a potential upside of 63.94%. As a group, “Banks” companies have a potential upside of 15.33%. Given Macro Bank’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Macro Bank is more favorable than its rivals.

Volatility & Risk

Macro Bank has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Macro Bank’s rivals have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Summary

Macro Bank rivals beat Macro Bank on 8 of the 15 factors compared.

Macro Bank Company Profile

Banco Macro S.A. provides various banking products and services to retail and corporate customers in Argentina. It offers various retail banking 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, and money transfers. The company also provides personal loans, document discounts, residential mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services, including deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services; and trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; and working capital facilities, credit for investment projects, and leasing and foreign trade transactions. Further, the company provides transaction services, such as cash management, collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; information services comprising Datanet and Interpymes services to corporate customers; and Internet and mobile banking services. Additionally, it offers short-term and medium-to-long-term corporate lending products. Banco Macro S.A. was incorporated in 1966 and is headquartered in Buenos Aires, Argentina.