Lion Finance Group (OTCMKTS:BDGSF) versus Banco Santander Brasil (NYSE:BSBR) Critical Analysis

Lion Finance Group (OTCMKTS:BDGSF) and Banco Santander Brasil (NYSE:BSBR) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Risk & Volatility

Lion Finance Group has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Banco Santander Brasil has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Earnings and Valuation

This table compares Lion Finance Group and Banco Santander Brasil”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lion Finance Group	$1.97 billion	2.36	$911.27 million	$16.95	6.16
Banco Santander Brasil	$47.19 billion	0.50	$2.48 billion	N/A	N/A

Banco Santander Brasil has higher revenue and earnings than Lion Finance Group.

Institutional and Insider Ownership

14.5% of Banco Santander Brasil shares are held by institutional investors. 0.1% of Banco Santander Brasil shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Lion Finance Group and Banco Santander Brasil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lion Finance Group	0	0	0	0	0.00
Banco Santander Brasil	1	2	2	0	2.20

Banco Santander Brasil has a consensus target price of $5.35, indicating a potential downside of 14.74%. Given Banco Santander Brasil’s stronger consensus rating and higher possible upside, analysts clearly believe Banco Santander Brasil is more favorable than Lion Finance Group.

Profitability

This table compares Lion Finance Group and Banco Santander Brasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lion Finance Group	33.27%	28.41%	3.90%
Banco Santander Brasil	6.97%	9.57%	0.93%

Summary

Banco Santander Brasil beats Lion Finance Group on 8 of the 12 factors compared between the two stocks.

About Lion Finance Group

Bank of Georgia Group PLC, through its subsidiaries, provides banking and financial services with focus on the Georgian and Armenian markets. It operates through Retail Banking, SME Banking, Corporate Investment Banking, and BNB segments. The Retail Banking segment offers consumer loans, mortgage loans, overdrafts, credit cards, and other credit facilities; funds transfer and settlement services; and handles customers' deposits for individuals and legal entities. This segment primarily serves mass retail and affluent, and high-net-worth client segments. The SME Banking segment provides SME loans, micro loans, and consumer and mortgage loans; funds transfers and settlement services; and handles customers' deposits for legal entities. This segment serves small and medium-sized enterprises; and micro businesses. The Corporate Investment Banking segment provides loans and other credit facilities, funds transfers and settlement services, trade finance services, and documentary operations support services; handles saving and term deposits for corporate and institutional customers; and offers brokerage services. The BNB segment provides retail and corporate banking services to clients in Belarus. Bank of Georgia Group PLC was incorporated in 2017 and is headquartered in London, the United Kingdom.

About Banco Santander Brasil

Banco Santander (Brasil) S.A., together with its subsidiaries, provides various banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. The company operates through Commercial Banking and Global Wholesale Banking segments. It offers local loans, commercial financing options, development bank funds, and cash management services; export and import financing, guarantees, structuring of asset services. In addition, the company provides financing and advisory services for infrastructure projects and capital markets instruments, as well as offers equity transactions and mergers and acquisitions services. Further, it offers foreign exchange products, derivatives, and investments to institutional investors, corporate clients, and individuals. Additionally, the company provides research services, as well as offers brokerage services for corporate, institutional, and individual investors. Furthermore, it provides deposits and other bank funding instruments, and debit and credit cards. The company provides financial services and products to its customers through multichannel distribution network comprising branches, mini-branches, ATMs, call centers, Internet banking, and mobile banking. Banco Santander (Brasil) S.A. was incorporated in 1985 and is headquartered in São Paulo, Brazil. The company operates as a subsidiary of Banco Santander, S.A.