Comparing Banco Santander (NYSE:SAN) and Bankinter (OTCMKTS:BKNIY)

Banco Santander (NYSE:SAN) and Bankinter (OTCMKTS:BKNIY) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Profitability

This table compares Banco Santander and Bankinter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Santander	26.92%	12.23%	0.74%
Bankinter	23.50%	17.69%	0.86%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Banco Santander and Bankinter, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Santander	1	3	7	0	2.55
Bankinter	1	5	1	0	2.00

Dividends

Banco Santander pays an annual dividend of $0.21 per share and has a dividend yield of 1.7%. Bankinter pays an annual dividend of $0.33 per share and has a dividend yield of 2.0%. Banco Santander pays out 17.4% of its earnings in the form of a dividend. Bankinter pays out 23.6% 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.

Valuation and Earnings

This table compares Banco Santander and Bankinter”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Santander	$66.36 billion	2.72	$15.95 billion	$1.21	10.15
Bankinter	$5.27 billion	2.83	$1.23 billion	$1.40	11.84

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

Institutional & Insider Ownership

9.2% of Banco Santander shares are held by institutional investors. 9.5% of Banco Santander shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Banco Santander has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Bankinter has a beta of -0.15, suggesting that its stock price is 115% less volatile than the S&P 500.

Summary

Banco Santander beats Bankinter on 9 of the 15 factors compared between the two stocks.

About Banco Santander

Banco Santander, S.A. provides various financial services worldwide. The company operates through Retail Banking, Santander Corporate & Investment Banking, Wealth Management & Insurance, and PagoNxt segments. It offers demand and time deposits, mutual funds, and current and savings accounts; mortgages, consumer finance, loans, and various financing solutions; and project finance, debt capital markets, global transaction banking, and corporate finance services. The company also provides asset management and private banking services; and insurance products. In addition, it offers corporate and investment banking services; and digital payment solutions. Further, it offers online banking and financial services to retail, business, institutional, corporate, private banking and university customers and clients. The company was formerly known as Banco Santander Central Hispano SA and changed its name to Banco Santander, S.A. in February 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.