Westamerica Bancorporation (NASDAQ:WABC) versus Grupo Financiero Galicia (NASDAQ:GGAL) Head-To-Head Analysis

Westamerica Bancorporation (NASDAQ:WABC) and Grupo Financiero Galicia (NASDAQ:GGAL) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

81.9% of Westamerica Bancorporation shares are held by institutional investors. 5.9% of Westamerica Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Westamerica Bancorporation	41.63%	12.80%	1.89%
Grupo Financiero Galicia	N/A	N/A	N/A

Dividends

Westamerica Bancorporation pays an annual dividend of $1.92 per share and has a dividend yield of 3.2%. Grupo Financiero Galicia pays an annual dividend of $0.57 per share and has a dividend yield of 1.9%. Westamerica Bancorporation pays out 41.4% 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. Westamerica Bancorporation has increased its dividend for 34 consecutive years. Westamerica Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Westamerica Bancorporation has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Grupo Financiero Galicia has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Valuation and Earnings

This table compares Westamerica Bancorporation 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
Westamerica Bancorporation	$271.77 million	5.09	$116.17 million	$4.64	12.90
Grupo Financiero Galicia	$10.56 billion	0.45	$170.02 million	$2.45	12.21

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

Analyst Recommendations

This is a breakdown of current recommendations for Westamerica Bancorporation and Grupo Financiero Galicia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westamerica Bancorporation	0	1	1	0	2.50
Grupo Financiero Galicia	1	3	1	0	2.00

Westamerica Bancorporation currently has a consensus price target of $65.00, suggesting a potential upside of 8.60%. Grupo Financiero Galicia has a consensus price target of $65.00, suggesting a potential upside of 117.32%. Given Grupo Financiero Galicia’s higher probable upside, analysts plainly believe Grupo Financiero Galicia is more favorable than Westamerica Bancorporation.

Summary

Westamerica Bancorporation beats Grupo Financiero Galicia on 11 of the 16 factors compared between the two stocks.

About Westamerica Bancorporation

Westamerica Bancorporation is a bank holding company headquartered in San Rafael, California. Its principal subsidiary, Westamerica Bank, provides banking services to individuals, businesses and public entities. The bank offers deposit accounts, certificates of deposit, commercial and consumer loans, and digital banking services. It also provides businesses with cash-management and other banking services. Westamerica Bank serves communities in Northern and Central California, including the San Francisco Bay Area and the Sacramento and Central Valleys.

About Grupo Financiero Galicia

Grupo Financiero Galicia is an Argentine financial services holding company with roots in Banco de Galicia y Buenos Aires, founded in 1905. The group operates primarily in Argentina through businesses serving individuals, companies and institutions. Its services include retail and commercial banking, lending, payments, insurance, investment and asset-management products, and brokerage services. The group also offers digital financial services, including through its Naranja X platform. Grupo Financiero Galicia’s operations are focused on the Argentine market, where it serves customers through a combination of physical branches and digital channels.