Comparing Central Valley Community Bancorp (CVCY) & Grupo Financiero Santander Mexico S.A. B. de C.V. (BSMX)

Central Valley Community Bancorp (NASDAQ: CVCY) and Grupo Financiero Santander Mexico S.A. B. de C.V. (NYSE:BSMX) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Central Valley Community Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. 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%. Central Valley Community Bancorp pays out 18.2% of its earnings in the form of a dividend. Grupo Financiero Santander Mexico S.A. B. de C.V. pays out 85.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Central Valley Community Bancorp and Grupo Financiero Santander Mexico S.A. B. de C.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Central Valley Community Bancorp 24.80% 9.41% 1.13%
Grupo Financiero Santander Mexico S.A. B. de C.V. 17.80% 15.27% 1.38%

Earnings & Valuation

This table compares Central Valley Community Bancorp and Grupo Financiero Santander Mexico S.A. B. de C.V.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Central Valley Community Bancorp $56.27 million 4.95 $15.18 million $1.32 15.55
Grupo Financiero Santander Mexico S.A. B. de C.V. $4.95 billion 1.12 $884.61 million $0.64 12.97

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

Institutional & Insider Ownership

40.7% of Central Valley Community Bancorp shares are owned by institutional investors. Comparatively, 29.5% of Grupo Financiero Santander Mexico S.A. B. de C.V. shares are owned by institutional investors. 19.7% of Central Valley Community Bancorp shares are owned by insiders. 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.

Volatility & Risk

Central Valley Community Bancorp has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500. Comparatively, Grupo Financiero Santander Mexico S.A. B. de C.V. has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Central Valley Community Bancorp and Grupo Financiero Santander Mexico S.A. B. de C.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Central Valley Community Bancorp 0 1 0 0 2.00
Grupo Financiero Santander Mexico S.A. B. de C.V. 0 5 1 0 2.17

Central Valley Community Bancorp currently has a consensus target price of $24.00, indicating a potential upside of 16.90%. Grupo Financiero Santander Mexico S.A. B. de C.V. has a consensus target price of $10.30, indicating a potential upside of 24.10%. Given Grupo Financiero Santander Mexico S.A. B. de C.V.’s stronger consensus rating and higher probable upside, analysts clearly believe Grupo Financiero Santander Mexico S.A. B. de C.V. is more favorable than Central Valley Community Bancorp.

Summary

Grupo Financiero Santander Mexico S.A. B. de C.V. beats Central Valley Community Bancorp on 9 of the 16 factors compared between the two stocks.

About Central Valley Community Bancorp

Central Valley Community Bancorp is a bank holding company, which operates through its subsidiary, Central Valley Community Bank (the Bank). The Company’s principal business is to provide, through its banking subsidiary, financial services in its primary market area in California. It serves over seven contiguous counties in California’s central valley, including Fresno County, Madera County, Merced County, Sacramento County, San Joaquin County, Stanislaus County, and Tulare County, and surrounding areas through the Bank. The Bank conducts a commercial banking business, which includes accepting demand, savings and time deposits and making commercial, real estate and consumer loans. It operates 24 full-service banking offices in Clovis, Exeter, Fresno, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Sacramento, Stockton, Tracy and Visalia. Its subsidiary also includes the Folsom Lake Bank.

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.

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