Banco BBVA Argentina (NYSE:BBAR – Get Rating) and Bancolombia (NYSE:CIB – Get Rating) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
Profitability
This table compares Banco BBVA Argentina and Bancolombia's net margins, return on equity and return on assets.
Get Banco BBVA Argentina alerts:| Net Margins | Return on Equity | Return on Assets | |
| Banco BBVA Argentina | 7.55% | 14.60% | 2.38% |
| Bancolombia | 23.45% | 14.96% | 1.71% |
Dividends
Banco BBVA Argentina pays an annual dividend of $0.23 per share and has a dividend yield of 7.6%. Bancolombia pays an annual dividend of $2.96 per share and has a dividend yield of 12.1%. Banco BBVA Argentina pays out 18.3% of its earnings in the form of a dividend. Bancolombia pays out 47.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bancolombia has increased its dividend for 1 consecutive years. Bancolombia is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
2.0% of Banco BBVA Argentina shares are held by institutional investors. Comparatively, 2.4% of Bancolombia shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.Analyst Recommendations
This is a breakdown of current ratings for Banco BBVA Argentina and Bancolombia, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banco BBVA Argentina | 0 | 0 | 0 | 0 | N/A |
| Bancolombia | 0 | 1 | 6 | 0 | 2.86 |
Bancolombia has a consensus target price of $44.00, indicating a potential upside of 80.55%. Given Bancolombia's higher probable upside, analysts plainly believe Bancolombia is more favorable than Banco BBVA Argentina.
Volatility & Risk
Banco BBVA Argentina has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Bancolombia has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.
Valuation and Earnings
This table compares Banco BBVA Argentina and Bancolombia's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banco BBVA Argentina | $2.51 billion | 0.25 | $98.68 million | $1.26 | 2.39 |
| Bancolombia | $5.87 billion | 1.00 | $1.23 billion | $6.23 | 3.91 |
Bancolombia has higher revenue and earnings than Banco BBVA Argentina. Banco BBVA Argentina is trading at a lower price-to-earnings ratio than Bancolombia, indicating that it is currently the more affordable of the two stocks.
Summary
Bancolombia beats Banco BBVA Argentina on 12 of the 15 factors compared between the two stocks.
About Banco BBVA Argentina
(Get Rating)
Banco BBVA Argentina S.A. provides various banking products and services to individuals and companies in Argentina. It provides retail banking products and services, such as checking and savings accounts, time deposits, credit cards, consumer and secured loans, mortgages, insurance, and investment products to individuals; and small and medium-sized companies products and services, including financing products, factoring, checking accounts, time deposits, transactional and payroll services, insurance, and investment products to private-sector companies. The company also provides corporate and investment banking products and services, such as global transaction services; global markets solutions comprising risk management and securities brokerage; long-term financing products, including project finance and syndicated loans; and corporate finance services comprising mergers and acquisitions, and capital markets advisory services to corporations and multinational companies operating in Argentina. As of December 31, 2021, it operated a network of 243 branches, 15 in-company branches, 7 point of sale outlets, 2 points of express support, 884 ATMs, and 854 self-service terminals, as well as mobile and internet banking services. The company was formerly known as BBVA Banco Francés S.A. and changed its name to Banco BBVA Argentina S.A. in July 2019. Banco BBVA Argentina S.A. was incorporated in 1886 and is based in Buenos Aires, Argentina.
About Bancolombia
(Get Rating)
Bancolombia S.A. provides banking products and services in Colombia, Panama, Puerto Rico, El Salvador, Costa Rica, and Guatemala. The company operates through nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, International Banking, and All Other. It offers checking and savings accounts, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, and overdrafts; financial support to real estate developers and mortgages for individuals and companies; factoring; and financial and operating leasing services. The company also provides hedging instruments, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services, including selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency transaction services; life, auto, commercial, and homeowner's insurance products; and online and computer banking services. Further, the company provides project and acquisition finance, debt and equity capital markets, principal investments, M&A, hedging strategies, restructurings, and structured financing; money market accounts, mutual and pension funds, private equity funds, payment and corporate trust, and custody; internet-based trading platform; inter-bank lending and repurchase agreements; managing escrow accounts, and investment and real estate funds; and transportation, securities brokerage, maintenance and remodeling, and outsourcing services. As of December 31, 2021, it operated 1,015 branches; 28,676 banking correspondents; 529 PAMs; 210 kiosks in El Salvador and 187 in Colombia; and 6,094 ATMs. Bancolombia S.A. was incorporated in 1945 and is headquartered in Medellín, Colombia.
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