Analyzing Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY) and Heritage Global (NASDAQ:HGBL)

Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY) and Heritage Global (NASDAQ:HGBL) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Volatility and Risk

Grupo Financiero Banorte SAB de CV has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Heritage Global has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Grupo Financiero Banorte SAB de CV shares are held by institutional investors. Comparatively, 33.5% of Heritage Global shares are held by institutional investors. 15.6% of Heritage Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grupo Financiero Banorte SAB de CV	14.97%	22.30%	2.20%
Heritage Global	-29.63%	6.12%	4.69%

Earnings & Valuation

This table compares Grupo Financiero Banorte SAB de CV and Heritage Global”s 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	1.43	$3.38 billion	$5.93	9.37
Heritage Global	$50.98 million	0.85	$3.59 million	($0.41)	-3.05

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

Analyst Ratings

This is a breakdown of current ratings for Grupo Financiero Banorte SAB de CV and Heritage Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Financiero Banorte SAB de CV	1	0	0	0	1.00
Heritage Global	1	0	1	0	2.00

Heritage Global has a consensus price target of $3.00, suggesting a potential upside of 140.00%. Given Heritage Global’s stronger consensus rating and higher possible upside, analysts clearly believe Heritage Global is more favorable than Grupo Financiero Banorte SAB de CV.

Summary

Grupo Financiero Banorte SAB de CV beats Heritage Global on 8 of the 14 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 Heritage Global

Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company operates in three segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. It provides a suite of market making, acquisitions, refurbishment, dispositions, valuations, and secured lending services. The company focuses on identifying, valuing, acquiring, and monetizing underlying tangible assets. It acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; and charged-off receivable portfolios. The company was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global, Inc. in August 2013. Heritage Global, Inc. was founded in 1937 and is headquartered in San Diego, California.