Head to Head Review: Grupo Financiero Santander Mexico S.A. B. de C.V. (BSMX) & Civista Bancshares (CIVB)

Grupo Financiero Santander Mexico S.A. B. de C.V. (NYSE: BSMX) and Civista Bancshares (NASDAQ:CIVB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Grupo Financiero Santander Mexico S.A. B. de C.V. and Civista Bancshares, as provided 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 4 1 0 2.20
Civista Bancshares 0 1 3 0 2.75

Grupo Financiero Santander Mexico S.A. B. de C.V. currently has a consensus target price of $10.30, indicating a potential upside of 23.21%. Civista Bancshares has a consensus target price of $24.38, indicating a potential upside of 6.91%. Given Grupo Financiero Santander Mexico S.A. B. de C.V.’s higher possible upside, equities analysts plainly believe Grupo Financiero Santander Mexico S.A. B. de C.V. is more favorable than Civista Bancshares.

Profitability

This table compares Grupo Financiero Santander Mexico S.A. B. de C.V. and Civista Bancshares’ 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. 17.80% 15.27% 1.38%
Civista Bancshares 21.56% 10.66% 1.06%

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 6.6%. Civista Bancshares pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Grupo Financiero Santander Mexico S.A. B. de C.V. pays out 80.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Civista Bancshares pays out 21.4% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Grupo Financiero Santander Mexico S.A. B. de C.V. and Civista Bancshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Grupo Financiero Santander Mexico S.A. B. de C.V. $4.95 billion 1.12 $884.61 million $0.68 12.29
Civista Bancshares $69.70 million 3.33 $17.21 million $1.31 17.40

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

Volatility and Risk

Grupo Financiero Santander Mexico S.A. B. de C.V. has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Civista Bancshares has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Insider & Institutional Ownership

31.0% of Grupo Financiero Santander Mexico S.A. B. de C.V. shares are owned by institutional investors. Comparatively, 41.6% of Civista Bancshares shares are owned by institutional investors. 4.8% of Civista Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

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

About Grupo Financiero Santander Mexico S.A. B. de C.V.

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.

About Civista Bancshares

Civista Bancshares, Inc. is a financial holding company. The Company, through the subsidiary bank, Civista Bank, is primarily engaged in the business of community banking. Civista Bank, located in Erie, Crawford, Champaign, Cuyahoga, Franklin, Logan, Madison, Montgomery, Summit, Huron, Ottawa and Richland Counties, Ohio, conducts a general banking business that involves collecting customer deposits, making loans, purchasing securities, and offering Trust services. The Company’s loan portfolio consists of commercial and agriculture, commercial real estate-owner occupied, commercial real estate non-owner occupied, residential real estate, real estate construction, consumer and other. Its securities are classified as available-for-sale (AFS) securities. Its deposits include non-interest-bearing demand deposits; interest-bearing demand deposits; savings account, including money market deposit accounts, and certificates of deposit, including individual retirement accounts (IRAs).

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