Reviewing Royal Bank of Scotland Group (RBS) & Galicia Financial Group (GGAL)

Royal Bank of Scotland Group (NYSE: RBS) and Galicia Financial Group (NASDAQ:GGAL) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Insider and Institutional Ownership

0.6% of Royal Bank of Scotland Group shares are owned by institutional investors. Comparatively, 31.2% of Galicia Financial Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Royal Bank of Scotland Group and Galicia Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Royal Bank of Scotland Group 0 7 4 0 2.36
Galicia Financial Group 1 1 3 0 2.40

Galicia Financial Group has a consensus target price of $100.00, suggesting a potential upside of 134.19%. Given Galicia Financial Group’s stronger consensus rating and higher probable upside, analysts plainly believe Galicia Financial Group is more favorable than Royal Bank of Scotland Group.

Dividends

Galicia Financial Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Royal Bank of Scotland Group does not pay a dividend.

Risk & Volatility

Royal Bank of Scotland Group has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Galicia Financial Group has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Valuation & Earnings

This table compares Royal Bank of Scotland Group and Galicia Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Royal Bank of Scotland Group $19.56 billion 2.18 $1.78 billion $0.65 10.95
Galicia Financial Group $4.19 billion 1.45 $503.09 million N/A N/A

Royal Bank of Scotland Group has higher revenue and earnings than Galicia Financial Group.

Profitability

This table compares Royal Bank of Scotland Group and Galicia Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Royal Bank of Scotland Group 11.77% 7.04% 0.46%
Galicia Financial Group N/A N/A N/A

Summary

Royal Bank of Scotland Group beats Galicia Financial Group on 8 of the 12 factors compared between the two stocks.

Royal Bank of Scotland Group Company Profile

The Royal Bank of Scotland Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. It operates through Personal & Business Banking, Commercial & Private Banking, RBS International, and NatWest Markets segments. The company offers savings and current accounts; secured personal loans, and business lending and asset-backed lending products; invoice financing and other financing products; and insurance products and credit cards. It also provides unitized fund, rate, portfolio management, payment, liquidity management, financial planning, and currency products. In addition, the company offers personal and business banking, commercial and private banking, wealth planning, investment management, risk management, and trading services to retail banking, mass affluent, small business, and high net worth customers. The Royal Bank of Scotland Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.

Galicia Financial Group Company Profile

Grupo Financiero Galicia SA is a holding company, which engages in banking, insurance, and the issuance of certificates of deposit through its subsidiaries. Its other activities include intercompany e-commerce, custody services, securities-related representations, mandates, and commissions. The company was founded on September 14, 1999 and is headquartered in Buenos Aires, Argentina.

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