Critical Analysis: Banco Latinoamericano de Comercio Exterior (BLX) and INTL Fcstone (INTL)

Banco Latinoamericano de Comercio Exterior (NYSE: BLX) and INTL Fcstone (NASDAQ:INTL) are both small-cap financials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Valuation and Earnings

This table compares Banco Latinoamericano de Comercio Exterior and INTL Fcstone’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Latinoamericano de Comercio Exterior $258.66 million 4.55 $87.04 million $1.90 15.73
INTL Fcstone $29.42 billion 0.03 $6.40 million $0.33 131.00

Banco Latinoamericano de Comercio Exterior has higher earnings, but lower revenue than INTL Fcstone. Banco Latinoamericano de Comercio Exterior is trading at a lower price-to-earnings ratio than INTL Fcstone, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Banco Latinoamericano de Comercio Exterior has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, INTL Fcstone has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Profitability

This table compares Banco Latinoamericano de Comercio Exterior and INTL Fcstone’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Latinoamericano de Comercio Exterior 29.97% 7.32% 1.11%
INTL Fcstone 0.02% 1.41% 0.10%

Dividends

Banco Latinoamericano de Comercio Exterior pays an annual dividend of $1.54 per share and has a dividend yield of 5.2%. INTL Fcstone does not pay a dividend. Banco Latinoamericano de Comercio Exterior pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Banco Latinoamericano de Comercio Exterior and INTL Fcstone, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Latinoamericano de Comercio Exterior 1 2 0 0 1.67
INTL Fcstone 0 0 0 0 N/A

Banco Latinoamericano de Comercio Exterior presently has a consensus price target of $27.50, indicating a potential downside of 7.98%. Given Banco Latinoamericano de Comercio Exterior’s higher possible upside, equities analysts plainly believe Banco Latinoamericano de Comercio Exterior is more favorable than INTL Fcstone.

Insider and Institutional Ownership

15.8% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. Comparatively, 65.0% of INTL Fcstone shares are held by institutional investors. 20.5% of INTL Fcstone shares are held by company 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

Banco Latinoamericano de Comercio Exterior beats INTL Fcstone on 8 of the 14 factors compared between the two stocks.

Banco Latinoamericano de Comercio Exterior Company Profile

Banco Latinoamericano de Comercio Exterior, S.A. (the Bank) is a specialized multinational bank. The Bank is established to support the financing of trade and economic integration in Latin America and the Caribbean. The Company operates in two segments: Commercial and Treasury. The Bank’s Commercial segment incorporates all of the Bank’s financial intermediation and fees generated by the commercial portfolio activities, such as origination of bilateral and syndicated credits, short- and medium-term loans, acceptances and contingent credits. The Bank’s Treasury segment incorporates deposits in banks and all of the Bank’s trading assets, securities available-for-sale and held-to-maturity, and the balance of the investment funds. The Bank serves a range of sectors, including oil and gas, agribusiness, food processing and manufacturing. Its products and services are categorized into three main areas: Financial Intermediation Business, Structuring and Syndications Business and Treasury.

INTL Fcstone Company Profile

INTL Fcstone Inc. is a financial services company. The Company provides financial products, and advisory and execution service. The Company operates through five segments: Commercial Hedging, Global Payments, Securities, Physical Commodities, and Clearing and Execution Services (CES). The Commercial Hedging segment serves its commercial clients through its team of risk management consultants. The Global Payments segment provides global payment solutions to banks and commercial businesses, as well as charities and non-governmental organizations and government organizations. The Securities segment provides solutions that facilitate cross-border trading. The Physical Commodities segment consists of its physical precious metals trading and physical agricultural and energy commodity businesses. The CES segment seeks to provide clearing and execution of exchange-traded futures and options for the institutional and trader market segments.

Receive News & Ratings for Banco Latinoamericano de Comercio Exterior Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Banco Latinoamericano de Comercio Exterior and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit