Erste Group Bank (OTCMKTS:EBKDY – Get Rating) and Grupo Financiero Galicia (NASDAQ:GGAL – Get Rating) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
Erste Group Bank pays an annual dividend of $0.57 per share and has a dividend yield of 4.4%. Grupo Financiero Galicia pays an annual dividend of $0.30 per share and has a dividend yield of 3.3%. Erste Group Bank pays out 23.3% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Erste Group Bank and Grupo Financiero Galicia’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Erste Group Bank||$9.70 billion||1.14||$2.28 billion||$2.45||5.24|
|Grupo Financiero Galicia||$5.11 billion||0.26||$326.49 million||N/A||N/A|
Insider and Institutional Ownership
0.4% of Erste Group Bank shares are held by institutional investors. Comparatively, 7.3% of Grupo Financiero Galicia shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for Erste Group Bank and Grupo Financiero Galicia, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Erste Group Bank||0||2||6||0||2.75|
|Grupo Financiero Galicia||1||0||1||0||2.00|
Erste Group Bank presently has a consensus price target of $39.50, suggesting a potential upside of 207.63%. Grupo Financiero Galicia has a consensus price target of $14.65, suggesting a potential upside of 60.64%. Given Erste Group Bank’s stronger consensus rating and higher possible upside, research analysts clearly believe Erste Group Bank is more favorable than Grupo Financiero Galicia.
Risk and Volatility
Erste Group Bank has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Grupo Financiero Galicia has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.
This table compares Erste Group Bank and Grupo Financiero Galicia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Erste Group Bank||20.35%||8.16%||0.61%|
|Grupo Financiero Galicia||N/A||N/A||N/A|
Erste Group Bank beats Grupo Financiero Galicia on 10 of the 13 factors compared between the two stocks.
About Erste Group Bank
Erste Group Bank AG provides a range of banking and other financial services to retail, corporate, real estate, and public sector customers in Austria, Central and Eastern Europe, and internationally. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management & Local Corporate Center, Savings Banks, and Group Corporate Center segments. It provides mortgage and consumer loans, investment products, current accounts, savings products, and credit cards, as well as cross selling products, such as leasing, insurance, and building society products. The company also offers factoring and accounts receivable purchasing; investment, acquisition and leveraged, project, and commercial real estate finance; interest rate and currency hedging, letters of credit, documentary collections, and guarantees; account management, payments, digital-banking, and cash logistics services; equity interests and investments, revolving export credits lines, customer financing, and export guarantee; and loan syndication, and debt and equity capital market services. In addition, it provides cash management, trade finance, customer referral, markets execution, and custody and brokerage services. Further, the company offers corporate finance; portfolio management; trading and market; trade execution, market making, and short-term liquidity management; and asset/liability management services, as well as working capital and bridge loans. As of December 31, 2021, it operated 2,091 branches. The company was founded in 1819 and is headquartered in Vienna, Austria.
About Grupo Financiero Galicia
Grupo Financiero Galicia S.A., a financial service holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, NaranjaX, Insurance, and Other Businesses segments. The company's products and services cover savings, current, and checking accounts; personal loans; express and mortgage loans; pledge and credit card loans; credit and debit cards; and online banking services. It also offers financing products and services; consumer finance services; electronic check; global custody services; Fima funds; financial and stock market services to individuals, companies, and financial institutions; foreign trade services; and capital market and investment banking products that include debt securities, short-term securities, bills, and financial trusts. In addition, the company provides robbery, personal accident, life collective, home, life, integral pyme, pet, surety, various risks, and technical insurance products. Further, it offers private banking services to high net worth individuals; and operates digital investment platform. As of December 31, 2021, it had 312 full service banking branches; and 1,991 ATMs and self-service terminals. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.
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