Contrasting Community Financial System (NYSE:CBU) and Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY)

Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY) and Community Financial System (NYSE:CBU) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Dividends

Grupo Financiero Banorte SAB de CV pays an annual dividend of $4.38 per share and has a dividend yield of 8.1%. Community Financial System pays an annual dividend of $1.88 per share and has a dividend yield of 2.8%. Grupo Financiero Banorte SAB de CV pays out 77.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Financial System pays out 45.6% of its earnings in the form of a dividend. Community Financial System has raised its dividend for 33 consecutive years.

Risk & Volatility

Grupo Financiero Banorte SAB de CV has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Community Financial System has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Earnings and Valuation

This table compares Grupo Financiero Banorte SAB de CV and Community Financial System”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Financiero Banorte SAB de CV	$21.89 billion	1.39	$3.07 billion	$5.67	9.51
Community Financial System	$835.66 million	4.25	$210.46 million	$4.12	16.38

Grupo Financiero Banorte SAB de CV has higher revenue and earnings than Community Financial System. Grupo Financiero Banorte SAB de CV is trading at a lower price-to-earnings ratio than Community Financial System, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Grupo Financiero Banorte SAB de CV and Community Financial System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Financiero Banorte SAB de CV	14.23%	22.08%	2.24%
Community Financial System	21.26%	11.24%	1.28%

Insider & Institutional Ownership

0.0% of Grupo Financiero Banorte SAB de CV shares are held by institutional investors. Comparatively, 73.8% of Community Financial System shares are held by institutional investors. 1.1% of Community Financial System shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Grupo Financiero Banorte SAB de CV and Community Financial System, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Financiero Banorte SAB de CV	0	1	0	0	2.00
Community Financial System	0	4	1	1	2.50

Community Financial System has a consensus price target of $69.75, indicating a potential upside of 3.33%. Given Community Financial System’s stronger consensus rating and higher probable upside, analysts clearly believe Community Financial System is more favorable than Grupo Financiero Banorte SAB de CV.

Summary

Community Financial System beats Grupo Financiero Banorte SAB de CV on 12 of the 18 factors compared between the two stocks.

About Grupo Financiero Banorte SAB de CV

Grupo Financiero Banorte, S.A.B. de C.V., through its subsidiaries, engages in the provision of banking and financial products and services in Mexico and internationally. The company accepts checking, current, retirement, and payroll accounts; and provides loans, including mortgage, car, payroll, personal, structured, syndicated, SME loans, and credit cards, as well as letter of credit financing, acquisition funding, and import and export foreign trade financing. It is also involved in investment planning, foreign currency purchase/sale, financial advice, brokerage, asset management, investment banking, letters of credit, bank guarantees, and leasing and factoring activities. In addition, the company sells mutual funds and debt and capital instruments; issues debit cards; and provides insurance services for car, home, life, medical, employee, and SMEs, as well as cash management services for collection, trustees, payroll, and lines of credit. Further, it provides online banking, POS, payment, reconciliation, documentary collection, import bills of exchange discount, International wire transfer, remittances, storage, inventory management, logistics, marketing, and payroll services. The company was founded in 1899 and is based in Mexico City, Mexico.

About Community Financial System

Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, institutional, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as interest and noninterest -bearing checking, savings, and money market deposit accounts, as well as time deposits. It also provides loans, including consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; paycheck protection program loans; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and check credit lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory; cash management, investment, and treasury services; asset management services; and employee benefit services, as well as operates as a full-service insurance agency that provides personal and commercial lines of insurance, and other risk management products and services. Further, it offers contribution plan administration, employee benefit trust, collective investment fund, retirement plan administration and benefit consulting, fund administration, transfer agency, actuarial and benefit consulting, and health and welfare consulting services; and act as an investor in residential and commercial real estate activities. Additionally, the company offers wealth management, retirement planning, higher educational planning, fiduciary, risk management, trust, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and insurance and advisory products, as well as master recordkeeping services. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York.