Banco Macro SA ADR Class B (BMA) & Royal Bank of Scotland Group (RBS) Critical Survey

Banco Macro SA ADR Class B (NYSE: RBS) and Royal Bank of Scotland Group (NYSE:RBS) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Earnings & Valuation

This table compares Banco Macro SA ADR Class B and Royal Bank of Scotland Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Macro SA ADR Class B $2.21 billion 1.42 $567.08 million $8.65 5.52
Royal Bank of Scotland Group $19.56 billion 1.93 $1.78 billion $0.65 9.69

Royal Bank of Scotland Group has higher revenue and earnings than Banco Macro SA ADR Class B. Banco Macro SA ADR Class B is trading at a lower price-to-earnings ratio than Royal Bank of Scotland Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Banco Macro SA ADR Class B has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Royal Bank of Scotland Group has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Banco Macro SA ADR Class B and Royal Bank of Scotland Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Macro SA ADR Class B 1 1 4 0 2.50
Royal Bank of Scotland Group 0 7 6 0 2.46

Banco Macro SA ADR Class B currently has a consensus target price of $108.85, suggesting a potential upside of 128.10%. Given Banco Macro SA ADR Class B’s stronger consensus rating and higher probable upside, analysts clearly believe Banco Macro SA ADR Class B is more favorable than Royal Bank of Scotland Group.

Profitability

This table compares Banco Macro SA ADR Class B and Royal Bank of Scotland Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Macro SA ADR Class B 24.73% 25.82% 5.20%
Royal Bank of Scotland Group 11.77% 7.04% 0.46%

Institutional & Insider Ownership

27.9% of Banco Macro SA ADR Class B shares are held by institutional investors. Comparatively, 0.5% of Royal Bank of Scotland Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Banco Macro SA ADR Class B pays an annual dividend of $2.23 per share and has a dividend yield of 4.7%. Royal Bank of Scotland Group does not pay a dividend. Banco Macro SA ADR Class B pays out 25.8% of its earnings in the form of a dividend.

Summary

Banco Macro SA ADR Class B beats Royal Bank of Scotland Group on 9 of the 15 factors compared between the two stocks.

About Banco Macro SA ADR Class B

Banco Macro S.A. provides various banking products and services to individuals and corporate customers in Argentina. It offers various retail products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines (ATMs), and money transfers. The company also provides personal loans, document discounts, mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services that include deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services. Further, the company provides trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; transaction services, such as collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; and information services, such as Datanet and Interpymes services to corporate customers. As of December 31, 2017, it operated through a network of 445 branches, 1,443 ATMs, 912 self-service terminals, and service points. Banco Macro S.A. also offers Internet banking services. The company was incorporated in 1988 and is headquartered in Buenos Aires, Argentina.

About Royal Bank of Scotland Group

Royal Bank of Scotland Group Plc engages in the provision of international banking and financial services. It operates through the following segments: Personal and Business Banking, Commercial and Private Banking, RBS International (RBSI), NatWest Markets, and Central Items and Other. The Personal and Business Banking segment consists of the United Kingdom Personal, Business Banking, and Ulster Bank RoI sub-segments.The Commercial and Private Banking segment covers the Commercial Banking, Private Banking, and RBS International Commercial Banking sub-segments, involved in serving retail, commercial, corporate, and financial institution customers. The RBSI serves retail, commercial, corporate and financial institution customers in Jersey, Guernsey, Isle of Man and Gibraltar and financial institution customers in Luxembourg and London. The NatWest Markets offers corporate and institutional customers global market access, providing them with trading, risk management, and financing solutions. The Central Items and Other segment includes corporate functions, such as RBS treasury, finance, risk management, compliance, legal, communications, and human resources. The company was founded on March 25, 1968 and is headquartered in Edinburgh, the United Kingdom.

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