Analyzing Grupo Financiero Santander Mexico S.A. B. de C.V. (BSMX) and CPB (CPF)

Grupo Financiero Santander Mexico S.A. B. de C.V. (NYSE: BSMX) and CPB (NYSE:CPF) 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.

Analyst Recommendations

This is a breakdown of current recommendations for Grupo Financiero Santander Mexico S.A. B. de C.V. and CPB, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grupo Financiero Santander Mexico S.A. B. de C.V. 0 3 2 0 2.40
CPB 0 2 1 0 2.33

Grupo Financiero Santander Mexico S.A. B. de C.V. currently has a consensus price target of $9.05, suggesting a potential downside of 8.03%. CPB has a consensus price target of $30.25, suggesting a potential upside of 1.24%. Given CPB’s higher probable upside, analysts plainly believe CPB is more favorable than Grupo Financiero Santander Mexico S.A. B. de C.V..

Insider and Institutional Ownership

30.9% of Grupo Financiero Santander Mexico S.A. B. de C.V. shares are held by institutional investors. Comparatively, 91.4% of CPB shares are held by institutional investors. 4.1% of CPB 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.

Dividends

Grupo Financiero Santander Mexico S.A. B. de C.V. pays an annual dividend of $0.55 per share and has a dividend yield of 5.6%. CPB pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Grupo Financiero Santander Mexico S.A. B. de C.V. pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CPB pays out 45.9% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Grupo Financiero Santander Mexico S.A. B. de C.V. and CPB’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Grupo Financiero Santander Mexico S.A. B. de C.V. $2.87 billion 4.65 $894.61 million $0.66 14.91
CPB $204.25 million 4.45 $47.79 million $1.57 19.03

Grupo Financiero Santander Mexico S.A. B. de C.V. has higher revenue and earnings than CPB. Grupo Financiero Santander Mexico S.A. B. de C.V. is trading at a lower price-to-earnings ratio than CPB, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Grupo Financiero Santander Mexico S.A. B. de C.V. and CPB’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grupo Financiero Santander Mexico S.A. B. de C.V. 15.97% 15.11% 1.37%
CPB 22.59% 9.52% 0.90%

Risk & Volatility

Grupo Financiero Santander Mexico S.A. B. de C.V. has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, CPB has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Summary

Grupo Financiero Santander Mexico S.A. B. de C.V. beats CPB on 9 of the 16 factors compared between the two stocks.

Grupo Financiero Santander Mexico S.A. B. de C.V. Company Profile

Grupo Financiero Santander Mexico SAB de CV, formerly Santander Mexico Financial Group SAB de CV or Grupo Financiero Santander SAB de CV, is a Mexico-based financial institution. The Company is primarily engaged in the provision of multiple banking services, securities brokerage, financial advice services, as well as other related investment activities. The Company offers its services to both, individual and corporate clients. The Company owns such principal subsidiaries as Banco Santander (Mexico) SA, Casa de Bolsa Santander SA de CV and Zurich Santander Seguros Mexico S.A.

CPB Company Profile

Central Pacific Financial Corp. is the bank holding company of Central Pacific Bank (the Bank). The Company’s segments include Banking Operations, Treasury and All Others. The Banking Operations segment includes construction and real estate development lending, commercial lending, residential mortgage lending, consumer lending, trust services, retail brokerage services and its retail branch offices, which provide a range of deposit and loan products, as well as various other banking services. The Treasury segment is responsible for managing the Company’s investment securities portfolio and wholesale funding activities. The All Others segment includes activities, such as electronic banking, data processing and management of Bank-owned properties. The Company also offers wealth management products and services, such as non-deposit investment products, annuities, insurance, investment management, asset custody, and general consultation and planning services.

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