Head-To-Head Review: Grupo Financiero Galicia (NASDAQ:GGAL) versus Standard Chartered (OTCMKTS:SCBFF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grupo Financiero Galicia	7.13%	18.96%	3.47%
Standard Chartered	13.63%	11.07%	0.66%

Earnings & Valuation

This table compares Grupo Financiero Galicia and Standard Chartered”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Financiero Galicia	$8,615.05 billion	0.00	$170.02 million	$2.27	21.16
Standard Chartered	$39.53 billion	1.51	$5.09 billion	$2.05	12.81

Standard Chartered has lower revenue, but higher earnings than Grupo Financiero Galicia. Standard Chartered 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Grupo Financiero Galicia and Standard Chartered, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Financiero Galicia	1	3	2	1	2.43
Standard Chartered	0	3	3	0	2.50

Grupo Financiero Galicia currently has a consensus target price of $64.00, suggesting a potential upside of 33.22%. Given Grupo Financiero Galicia’s higher possible upside, equities research analysts plainly believe Grupo Financiero Galicia is more favorable than Standard Chartered.

Dividends

Grupo Financiero Galicia pays an annual dividend of $4.85 per share and has a dividend yield of 10.1%. Standard Chartered pays an annual dividend of $0.98 per share and has a dividend yield of 3.7%. Grupo Financiero Galicia pays out 213.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Standard Chartered pays out 47.8% of its earnings in the form of a dividend.

Risk and Volatility

Grupo Financiero Galicia has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Standard Chartered has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Summary

Grupo Financiero Galicia beats Standard Chartered on 9 of the 15 factors compared between the two stocks.

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.

About Standard Chartered

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.