Financial Review: BOK Financial (NASDAQ:BOKF) & Grupo Financiero Galicia (NASDAQ:GGAL)

BOK Financial (NASDAQ:BOKF) and Grupo Financiero Galicia (NASDAQ:GGAL) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Valuation & Earnings

This table compares BOK Financial and Grupo Financiero Galicia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BOK Financial	$3.38 billion	2.27	$577.99 million	$10.61	11.92
Grupo Financiero Galicia	$10.56 billion	0.54	$170.02 million	$2.45	14.47

BOK Financial has higher earnings, but lower revenue than Grupo Financiero Galicia. BOK Financial is trading at a lower price-to-earnings ratio than Grupo Financiero Galicia, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

BOK Financial has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Grupo Financiero Galicia has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for BOK Financial and Grupo Financiero Galicia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BOK Financial	1	9	2	0	2.08
Grupo Financiero Galicia	1	4	2	0	2.14

BOK Financial currently has a consensus price target of $141.27, indicating a potential upside of 11.71%. Grupo Financiero Galicia has a consensus price target of $65.00, indicating a potential upside of 83.31%. Given Grupo Financiero Galicia’s stronger consensus rating and higher possible upside, analysts plainly believe Grupo Financiero Galicia is more favorable than BOK Financial.

Dividends

BOK Financial pays an annual dividend of $2.52 per share and has a dividend yield of 2.0%. Grupo Financiero Galicia pays an annual dividend of $0.57 per share and has a dividend yield of 1.6%. BOK Financial pays out 23.8% of its earnings in the form of a dividend. Grupo Financiero Galicia pays out 23.3% 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. BOK Financial has raised its dividend for 20 consecutive years. BOK Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

34.4% of BOK Financial shares are owned by institutional investors. 63.5% of BOK Financial shares are owned 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.

Profitability

This table compares BOK Financial and Grupo Financiero Galicia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BOK Financial	19.53%	10.41%	1.18%
Grupo Financiero Galicia	N/A	N/A	N/A

Summary

BOK Financial beats Grupo Financiero Galicia on 10 of the 15 factors compared between the two stocks.

About BOK Financial

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management. The Commercial Banking segment offers lending, treasury, cash management, and customer commodity risk management products for small businesses, middle market, and larger commercial customers, as well as operates TransFund electronic funds transfer network. The Consumer Banking segment engages in the provision of retail lending and deposit services to small business customers through retail branch network; and mortgage loan origination and servicing activities. The Wealth Management segment offers fiduciary, private bank, insurance, and investment advisory services; and brokerage and trading services primarily related to providing liquidity to the mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivative contracts, as well as underwrites state and municipal securities. The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, manufacturing, wholesale/retail, energy, and other sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes; residential mortgage and personal loans; and automated teller machine, call center, and Internet and mobile banking services. The company was founded in 1910 and is headquartered in Tulsa, Oklahoma.

About Grupo Financiero Galicia

Grupo Financiero Galicia S.A., a financial service holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, NaranjaX, Insurance, and Other Businesses segments. It also offers personal loans; express and mortgage loans; pledge and credit card loans; credit and debit cards; and online banking services, as well as savings, deposits, and checking accounts related services. In addition, the company offers financing products; consumer finance and digital banking services; electronic check; global custody services; Fima funds; financial and stock market services to individuals, companies, and financial institutions; foreign trade services; and capital market and investment banking products that include debt securities, short-term securities, and financial trusts. Further, it provides robbery, personal accident, life collective, home, life, integral, pet, surety, and technical insurance products. Additionally, the company offers private banking services to high net worth individuals; and operates digital investment platform. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.