Reviewing Grupo Financiero Galicia (NASDAQ:GGAL) & Commerzbank (OTCMKTS:CRZBY)

Commerzbank (OTCMKTS:CRZBY) and Grupo Financiero Galicia (NASDAQ:GGAL) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Dividends

Commerzbank pays an annual dividend of $0.52 per share and has a dividend yield of 1.2%. Grupo Financiero Galicia pays an annual dividend of $1.97 per share and has a dividend yield of 4.5%. Commerzbank pays out 20.6% of its earnings in the form of a dividend. Grupo Financiero Galicia pays out 99.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Commerzbank and Grupo Financiero Galicia”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerzbank	$26.54 billion	1.75	$2.97 billion	$2.53	16.73
Grupo Financiero Galicia	$10.56 billion	0.66	$170.02 million	$1.98	21.99

Commerzbank has higher revenue and earnings than Grupo Financiero Galicia. Commerzbank is trading at a lower price-to-earnings ratio than Grupo Financiero Galicia, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Commerzbank and Grupo Financiero Galicia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commerzbank	11.55%	7.74%	0.47%
Grupo Financiero Galicia	7.13%	18.96%	3.47%

Volatility and Risk

Commerzbank has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Grupo Financiero Galicia has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Commerzbank and Grupo Financiero Galicia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerzbank	0	5	5	0	2.50
Grupo Financiero Galicia	2	2	3	1	2.38

Grupo Financiero Galicia has a consensus price target of $65.50, suggesting a potential upside of 50.44%. Given Grupo Financiero Galicia’s higher probable upside, analysts plainly believe Grupo Financiero Galicia is more favorable than Commerzbank.

Summary

Commerzbank beats Grupo Financiero Galicia on 8 of the 15 factors compared between the two stocks.

About Commerzbank

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

About Grupo Financiero Galicia

Grupo Financiero Galicia S.A., a financial service holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, NaranjaX, Insurance, and Other Businesses segments. It also offers personal loans; express and mortgage loans; pledge and credit card loans; credit and debit cards; and online banking services, as well as savings, deposits, and checking accounts related services. In addition, the company offers financing products; consumer finance and digital banking services; electronic check; global custody services; Fima funds; financial and stock market services to individuals, companies, and financial institutions; foreign trade services; and capital market and investment banking products that include debt securities, short-term securities, and financial trusts. Further, it provides robbery, personal accident, life collective, home, life, integral, pet, surety, and technical insurance products. Additionally, the company offers private banking services to high net worth individuals; and operates digital investment platform. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.