Banco Santander (NYSE:SAN) versus Beacon Financial (NYSE:BBT) Head-To-Head Comparison

Beacon Financial (NYSE:BBT) and Banco Santander (NYSE:SAN) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Profitability

This table compares Beacon Financial and Banco Santander’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beacon Financial	8.96%	9.15%	1.01%
Banco Santander	26.94%	12.43%	0.75%

Risk & Volatility

Beacon Financial has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Banco Santander has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Earnings and Valuation

This table compares Beacon Financial and Banco Santander”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beacon Financial	$882.68 million	2.65	$90.27 million	$1.32	21.15
Banco Santander	$66.36 billion	3.11	$15.95 billion	$1.23	11.41

Banco Santander has higher revenue and earnings than Beacon Financial. Banco Santander is trading at a lower price-to-earnings ratio than Beacon Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Beacon Financial and Banco Santander, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beacon Financial	0	5	2	0	2.29
Banco Santander	0	2	12	0	2.86

Beacon Financial presently has a consensus price target of $32.50, indicating a potential upside of 16.42%. Banco Santander has a consensus price target of $15.10, indicating a potential upside of 7.62%. Given Beacon Financial’s higher possible upside, equities analysts clearly believe Beacon Financial is more favorable than Banco Santander.

Institutional & Insider Ownership

83.1% of Beacon Financial shares are held by institutional investors. Comparatively, 9.2% of Banco Santander shares are held by institutional investors. 1.1% of Beacon Financial shares are held by insiders. Comparatively, 9.5% of Banco Santander shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Beacon Financial pays an annual dividend of $1.29 per share and has a dividend yield of 4.6%. Banco Santander pays an annual dividend of $0.21 per share and has a dividend yield of 1.5%. Beacon Financial pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Banco Santander pays out 17.1% of its earnings in the form of a dividend.

Summary

Banco Santander beats Beacon Financial on 10 of the 16 factors compared between the two stocks.

About Beacon Financial

Truist Financial Corp. operates as a financial holding company, which engages in the provision of banking services to individuals, businesses and municipalities. The firm offers a variety of loans and lease financing to individuals and entities, including insurance premium financing, permanent commercial real estate financing arrangements, loan servicing for third-party investors, direct consumer finance loans to individuals, credit card lending, automobile financing and equipment financing. It also markets a range of other services, including deposits, life insurance, property and casualty insurance, health Truist Financial Corp. operates as a financial holding company. It engages in the provision of banking services to individuals, businesses and municipalities. The company operates through the following segments: Consumer Banking and Wealth; Corporate and Commercial Banking; and Insurance Holdings. The firm offers a variety of loans and lease financing to individuals and entities, including insurance premium financing, permanent commercial real estate financing arrangements, loan servicing for third-party investors, direct consumer finance loans to individuals, credit card lending, automobile financing and equipment financing. It also markets a range of other services, including deposits, life insurance, property and casualty insurance, health insurance and commercial general liability insurance on an agency basis and through a wholesale insurance brokerage operation, merchant services, trust and retirement services, comprehensive wealth advisory services, asset management and capital markets services. The company was founded on December 6, 2019 and is headquartered in Charlotte, NC. insurance and commercial general liability insurance on an agency basis and through a wholesale insurance brokerage operation, merchant services, trust and retirement services, comprehensive wealth advisory services, asset management and capital markets services. The company was founded on December 6, 2019 and is headquartered in Charlotte, NC.

About Banco Santander

Banco Santander, S.A. provides various financial services worldwide. The company operates through Retail Banking, Santander Corporate & Investment Banking, Wealth Management & Insurance, and PagoNxt segments. It offers demand and time deposits, mutual funds, and current and savings accounts; mortgages, consumer finance, loans, and various financing solutions; and project finance, debt capital markets, global transaction banking, and corporate finance services. The company also provides asset management and private banking services; and insurance products. In addition, it offers corporate and investment banking services; and digital payment solutions. Further, it offers online banking and financial services to retail, business, institutional, corporate, private banking and university customers and clients. The company was formerly known as Banco Santander Central Hispano SA and changed its name to Banco Santander, S.A. in February 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.