Critical Review: Macro Bank (BMA) vs. Its Peers

Macro Bank (NYSE: BMA) is one of 341 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Macro Bank to related companies based on the strength of its institutional ownership, analyst recommendations, dividends, valuation, risk, profitability and earnings.

Volatility & Risk

Macro Bank has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Macro Bank’s competitors have a beta of 0.82, meaning that their average share price is 18% less volatile than the S&P 500.

Profitability

This table compares Macro Bank and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macro Bank 19.37% 26.26% 4.52%
Macro Bank Competitors 18.65% 8.63% 0.93%

Institutional and Insider Ownership

28.1% of Macro Bank shares are held by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are held by institutional investors. 10.3% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Macro Bank and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macro Bank 1 2 1 0 2.00
Macro Bank Competitors 2257 9114 9201 377 2.37

Macro Bank currently has a consensus target price of $113.70, suggesting a potential downside of 2.97%. As a group, “Banks” companies have a potential downside of 2.87%. Given Macro Bank’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Macro Bank has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Macro Bank and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Macro Bank $2.51 billion $442.81 million 14.98
Macro Bank Competitors $6.26 billion $916.25 million 349.42

Macro Bank’s competitors have higher revenue and earnings than Macro Bank. Macro Bank is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Macro Bank pays an annual dividend of $0.75 per share and has a dividend yield of 0.6%. Macro Bank pays out 9.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 34.6% of their earnings in the form of a dividend.

Summary

Macro Bank competitors beat Macro Bank on 10 of the 15 factors compared.

Macro Bank Company Profile

Banco Macro SA is an Argnetina-based financial institution (the Bank) that offers traditional bank products and services to companies, including those operating in regional economies, as well as to individuals. In addition, the Bank performs certain transactions through its subsidiaries, including mainly Banco del Tucuman, Macro Bank Ltd, Macro Securities SA, Macro Fiducia SA and Macro Fondos SGFCI SA. It has approximately two categories of customers, such as retail customers, including individuals and entrepreneurs and corporate customers, which include small, medium and large companies and major corporations. In addition, it provides services to over four provincial governments. It provides its corporate customers with traditional banking products and services, such as deposits, lending (including overdraft facilities), check cashing advances and factoring, guaranteed loans and credit lines for financing foreign trade and cash management services.

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