Intercorp Financial (NYSE:IFS) and BBVA Banco Frances (NYSE:BBAR) Financial Contrast

Intercorp Financial (NYSE:IFS) and BBVA Banco Frances (NYSE:BBAR) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Dividends

BBVA Banco Frances pays an annual dividend of $0.26 per share and has a dividend yield of 5.1%. Intercorp Financial does not pay a dividend. BBVA Banco Frances pays out -136.8% of its earnings in the form of a dividend.

Insider and Institutional Ownership

13.5% of BBVA Banco Frances shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Intercorp Financial and BBVA Banco Frances’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intercorp Financial N/A N/A N/A
BBVA Banco Frances N/A 38.37% 4.53%

Analyst Ratings

This is a summary of current recommendations for Intercorp Financial and BBVA Banco Frances, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intercorp Financial 0 0 1 0 3.00
BBVA Banco Frances 1 1 1 0 2.00

Intercorp Financial currently has a consensus target price of $59.00, suggesting a potential upside of 48.61%. Given Intercorp Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Intercorp Financial is more favorable than BBVA Banco Frances.

Earnings & Valuation

This table compares Intercorp Financial and BBVA Banco Frances’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intercorp Financial N/A N/A N/A N/A N/A
BBVA Banco Frances $1.63 billion 0.64 -$52.88 million ($0.19) -26.74

Intercorp Financial has higher earnings, but lower revenue than BBVA Banco Frances.

Summary

BBVA Banco Frances beats Intercorp Financial on 6 of the 8 factors compared between the two stocks.

About Intercorp Financial

Intercorp Financial Services, Inc. is a holding company, which engages in the provision of financial services. Through its subsidiaries, it operates through the following business segments: Banking, Insurance, and Wealth Management. The Banking segment provides a range of retail banking and commercial banking products, and services to individuals, large companies, and small and medium enterprises. The Insurance segment offers retirement, savings, life, unemployment, and other insurance products mainly to retail customers. The Wealth Management segment comprises wealth management, private banking, financing, brokerage, advisory, and other investment services mainly to high net worth individuals. The company was founded on September 19, 2006 and is headquartered in Lima, Peru.

About BBVA Banco Frances

BBVA Banco Francés S.A., together with its subsidiaries, provides financial services to small and medium enterprises, and individual customers in Spain, Mexico, South America, the United States, Turkey, and rest of Eurasia. The company offers current, checking, and savings accounts, as well as demand and time deposits. It also provides personal and auto loans, and mortgages; loans to the public sector and local financial institutions, and short-term loans to companies, as well as overdraft lines of credit, discounted instruments, real estate mortgage loans, collateral loans, consumer loans, credit card loans, pre-financing and export financing, and short-term placements in foreign banks. In addition, the company offers fire, mixed family and comprehensive, civil liability, theft, personal accidents, umbrella life, debtor balances, funeral services, and other insurance coverage products; investment fund and pension fund management services; and stock exchange brokerage services. Further, it provides financing for the acquisition of new and second-hand Peugeot and Citroën vehicles through pledge loans, receivables from financial leases, and other financial products and in supplying services associated to the purchase, maintenance, and insurance coverage of motor vehicles; and secured loans for the purchase of VW, Audi, and Ducati new or second hand vehicles, credit through operating leases, and other financial products and services, as well as engages in security trading, investment banking, and other authorized operations. As of December 31, 2017, it operated a network of 251 retail branches, 15 in-company branches, 1 points of sale, and 2 point of express support, 797 ATMs, 822 self-service terminals, a telephone banking, and Internet banking services. The company was formerly known as Banco Francés S.A. and changed its name to BBVA Banco Francés S.A. in October 2000. The company was founded in 1886 and is headquartered in Buenos Aires, the Republic of Argentina.

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