Comparing Banco Macro SA ADR Class B (BMA) & Royal Bank of Scotland Group (RBS)

Banco Macro SA ADR Class B (NYSE: BMA) and Royal Bank of Scotland Group (NYSE:RBS) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Institutional & Insider Ownership

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28.3% of Banco Macro SA ADR Class B shares are held by institutional investors. Comparatively, 0.6% of Royal Bank of Scotland Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Banco Macro SA ADR Class B pays an annual dividend of $2.23 per share and has a dividend yield of 3.3%. Royal Bank of Scotland Group does not pay a dividend. Banco Macro SA ADR Class B pays out 25.8% of its earnings in the form of a dividend.

Profitability

This table compares Banco Macro SA ADR Class B and Royal Bank of Scotland Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Macro SA ADR Class B	24.73%	25.82%	5.20%
Royal Bank of Scotland Group	11.77%	7.04%	0.46%

Valuation and Earnings

This table compares Banco Macro SA ADR Class B and Royal Bank of Scotland Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Macro SA ADR Class B	$2.21 billion	2.00	$567.08 million	$8.65	7.78
Royal Bank of Scotland Group	$19.56 billion	1.99	$1.78 billion	$0.65	10.00

Royal Bank of Scotland Group has higher revenue and earnings than Banco Macro SA ADR Class B. Banco Macro SA ADR Class B is trading at a lower price-to-earnings ratio than Royal Bank of Scotland Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Banco Macro SA ADR Class B and Royal Bank of Scotland Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Macro SA ADR Class B	0	1	5	0	2.83
Royal Bank of Scotland Group	0	7	5	0	2.42

Banco Macro SA ADR Class B presently has a consensus target price of $108.85, indicating a potential upside of 61.71%. Given Banco Macro SA ADR Class B’s stronger consensus rating and higher possible upside, analysts plainly believe Banco Macro SA ADR Class B is more favorable than Royal Bank of Scotland Group.

Volatility and Risk

Banco Macro SA ADR Class B has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Royal Bank of Scotland Group has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Summary

Banco Macro SA ADR Class B beats Royal Bank of Scotland Group on 10 of the 14 factors compared between the two stocks.

Banco Macro SA ADR Class B Company Profile

Banco Macro S.A. provides various banking products and services to individuals and corporate customers in Argentina. It offers various retail products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines (ATMs), and money transfers. The company also provides personal loans, document discounts, mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services that include deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services. Further, the company provides trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; transaction services, such as collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; and information services, such as Datanet and Interpymes services to corporate customers. As of December 31, 2016, it operated through a network of 444 branches, 1,395 ATMs, 920 self-service terminals, and service points. Banco Macro S.A. also offers Internet banking services. The company was incorporated in 1988 and is headquartered in Buenos Aires, Argentina.

Royal Bank of Scotland Group Company Profile

The Royal Bank of Scotland Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. It operates through Personal & Business Banking, Commercial & Private Banking, RBS International, and NatWest Markets segments. The company offers savings and current accounts; secured personal loans, and business lending and asset-backed lending products; invoice financing and other financing products; and insurance products and credit cards. It also provides unitized fund, rate, portfolio management, payment, liquidity management, financial planning, and currency products. In addition, the company offers personal and business banking, commercial and private banking, wealth planning, investment management, risk management, and trading services to retail banking, mass affluent, small business, and high net worth customers. The Royal Bank of Scotland Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.