Civista Bancshares (NASDAQ:CIVB) vs. Grupo Aval Acciones y Valores (NYSE:AVAL) Financial Analysis

Civista Bancshares (NASDAQ:CIVB) and Grupo Aval Acciones y Valores (NYSE:AVAL) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Valuation and Earnings

This table compares Civista Bancshares and Grupo Aval Acciones y Valores”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Civista Bancshares	$254.95 million	2.32	$46.21 million	$2.79	10.19
Grupo Aval Acciones y Valores	$18,501.18 billion	0.00	$344.37 million	$0.40	10.76

Grupo Aval Acciones y Valores has higher revenue and earnings than Civista Bancshares. Civista Bancshares is trading at a lower price-to-earnings ratio than Grupo Aval Acciones y Valores, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Civista Bancshares and Grupo Aval Acciones y Valores’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Civista Bancshares	21.82%	10.97%	1.41%
Grupo Aval Acciones y Valores	5.08%	6.06%	0.60%

Risk and Volatility

Civista Bancshares has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Grupo Aval Acciones y Valores has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Civista Bancshares and Grupo Aval Acciones y Valores, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Civista Bancshares	0	3	3	0	2.50
Grupo Aval Acciones y Valores	1	2	0	0	1.67

Civista Bancshares currently has a consensus target price of $30.25, suggesting a potential upside of 6.38%. Grupo Aval Acciones y Valores has a consensus target price of $5.00, suggesting a potential upside of 16.12%. Given Grupo Aval Acciones y Valores’ higher possible upside, analysts plainly believe Grupo Aval Acciones y Valores is more favorable than Civista Bancshares.

Dividends

Civista Bancshares pays an annual dividend of $0.72 per share and has a dividend yield of 2.5%. Grupo Aval Acciones y Valores pays an annual dividend of $0.15 per share and has a dividend yield of 3.5%. Civista Bancshares pays out 25.8% of its earnings in the form of a dividend. Grupo Aval Acciones y Valores pays out 37.5% 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. Civista Bancshares has raised its dividend for 4 consecutive years.

Insider & Institutional Ownership

52.1% of Civista Bancshares shares are held by institutional investors. Comparatively, 0.2% of Grupo Aval Acciones y Valores shares are held by institutional investors. 1.6% of Civista Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Civista Bancshares beats Grupo Aval Acciones y Valores on 12 of the 17 factors compared between the two stocks.

About Civista Bancshares

Civista Bancshares, Inc. operates as the financial holding company for Civista Bank that provides community banking services. It collects a range of customer deposits; and offers commercial and agriculture, commercial and residential real estate, farm real estate, real estate construction, consumer, and other loans, as well as letters of credit. The company also holds and manages securities portfolio; leases general equipment; and provides captive insurance products. It operates in North Central, West Central, South Western Ohio, South Eastern Indiana, and Northern Kentucky. The company was formerly known as First Citizens Banc Corp and changed its name to Civista Bancshares, Inc. in May 2015. Civista Bancshares, Inc. was founded in 1884 and is headquartered in Sandusky, Ohio.

About Grupo Aval Acciones y Valores

Grupo Aval Acciones y Valores S.A. provides a range of financial services and products to public and private sector customers in Colombia and Central America. It offers traditional deposit services and products, including checking accounts, savings accounts, time deposits, and other deposits. The company also provides commercial loans comprising general purpose loans, working capital loans, leases, loans funded by development banks, corporate credit cards, and overdraft loans; consumer loans, such as payroll loans, personal loans, automobile and other vehicle loans, credit cards, overdrafts, leases, and general purpose loans; and microcredit and mortgage loans. In addition, the company offers pension and severance fund management services; investment banking, including services relating to capital markets, mergers and acquisitions, and project finance transactions; mobile and online banking services; and bancassurance, insurance, trust, bonded warehousing and brokerage transactions, real estate escrow services, merchandise and document storage and deposit, customs agency, cargo management, surety bond and merchandise distribution services, and payment and collection services. Further, it is involved in equity investments in various sectors, including infrastructure, energy and gas, agribusiness, and hospitality; and treasury operations. The company was incorporated in 1994 and is headquartered in Bogotá, Colombia. Grupo Aval Acciones y Valores S.A.