Head to Head Survey: Banco Bilbao Vizcaya Argentaria (NYSE:BBVA) vs. VersaBank (NASDAQ:VBNK)

VersaBank (NASDAQ:VBNKGet Rating) and Banco Bilbao Vizcaya Argentaria (NYSE:BBVAGet Rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

24.3% of VersaBank shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares VersaBank and Banco Bilbao Vizcaya Argentaria’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VersaBank 21.25% 8.29% 1.07%
Banco Bilbao Vizcaya Argentaria 23.15% 9.94% 0.74%

Valuation and Earnings

This table compares VersaBank and Banco Bilbao Vizcaya Argentaria’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VersaBank $75.30 million 2.84 $17.80 million $0.67 11.62
Banco Bilbao Vizcaya Argentaria $24.92 billion N/A $5.50 billion $0.85 5.24

Banco Bilbao Vizcaya Argentaria has higher revenue and earnings than VersaBank. Banco Bilbao Vizcaya Argentaria is trading at a lower price-to-earnings ratio than VersaBank, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for VersaBank and Banco Bilbao Vizcaya Argentaria, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VersaBank 0 0 0 1 4.00
Banco Bilbao Vizcaya Argentaria 0 7 5 0 2.42

Banco Bilbao Vizcaya Argentaria has a consensus price target of $6.23, indicating a potential upside of 40.07%. Given Banco Bilbao Vizcaya Argentaria’s higher probable upside, analysts plainly believe Banco Bilbao Vizcaya Argentaria is more favorable than VersaBank.

Dividends

VersaBank pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Banco Bilbao Vizcaya Argentaria pays an annual dividend of $0.40 per share and has a dividend yield of 9.0%. VersaBank pays out 11.9% of its earnings in the form of a dividend. Banco Bilbao Vizcaya Argentaria pays out 47.1% 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.

Summary

Banco Bilbao Vizcaya Argentaria beats VersaBank on 8 of the 14 factors compared between the two stocks.

VersaBank Company Profile (Get Rating)

VersaBank, a schedule I chartered bank, provides various banking products and services in Canada. The company offers deposit products, such as guaranteed investment certificates, registered retirement savings plans, daily interest savings accounts, and tax-free savings accounts, as well as deposit insurance products. It also provides lending services, including point of sale financing that involves purchasing loan and lease receivables from finance companies operating in various industries; and commercial banking services comprising commercial real estate, public sector/infrastructure financing, condominium financing, and residential mortgages. The company was formerly known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.

Banco Bilbao Vizcaya Argentaria Company Profile (Get Rating)

Banco Bilbao Vizcaya Argentaria, S.A., together with its subsidiaries, provides retail banking, wholesale banking, and asset management services. It offers current accounts; and demand, savings, overnight, time, term, and subordinated deposits. The company also provides loan products; deals in securities; and manages pension and investment funds. In addition, it offers credit cards; corporate and investment banking services; insurance products and services; and real estate services. The company provides its products through online and mobile channels. As of December 31, 2021, it operated through a network of 6,083 branches and 29,148 ATMs. It operates in Spain, Mexico, South America, the United States, Turkey, Asia, and rest of Europe. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.

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