Macro Bank (NYSE:BMA) & Ohio Valley Banc (NASDAQ:OVBC) Financial Contrast

Macro Bank (NYSE:BMA) and Ohio Valley Banc (NASDAQ:OVBC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Macro Bank and Ohio Valley Banc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macro Bank	0	2	5	1	2.88
Ohio Valley Banc	0	0	1	0	3.00

Macro Bank currently has a consensus target price of $111.25, indicating a potential upside of 43.05%. Given Macro Bank’s higher probable upside, analysts clearly believe Macro Bank is more favorable than Ohio Valley Banc.

Profitability

This table compares Macro Bank and Ohio Valley Banc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Macro Bank	5.95%	8.65%	2.04%
Ohio Valley Banc	14.31%	8.37%	0.88%

Volatility & Risk

Macro Bank has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Ohio Valley Banc has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500.

Dividends

Macro Bank pays an annual dividend of $5.45 per share and has a dividend yield of 7.0%. Ohio Valley Banc pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Macro Bank pays out 119.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ohio Valley Banc pays out 33.2% of its earnings in the form of a dividend. Ohio Valley Banc has raised its dividend for 3 consecutive years.

Institutional & Insider Ownership

22.1% of Ohio Valley Banc shares are held by institutional investors. 18.3% of Macro Bank shares are held by company insiders. Comparatively, 7.2% of Ohio Valley Banc shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Macro Bank and Ohio Valley Banc”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Macro Bank	$4.72 billion	1.05	$231.60 million	$4.57	17.02
Ohio Valley Banc	$94.21 million	2.33	$15.60 million	$3.01	15.51

Macro Bank has higher revenue and earnings than Ohio Valley Banc. Ohio Valley Banc is trading at a lower price-to-earnings ratio than Macro Bank, indicating that it is currently the more affordable of the two stocks.

Summary

Macro Bank beats Ohio Valley Banc on 12 of the 18 factors compared between the two stocks.

About Macro Bank

Banco Macro S.A. provides various banking products and services to retail and corporate customers in Argentina. It offers various retail banking products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines, and money transfers. The company also provides personal loans, document discounts, residential mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services, including deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services; and trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; and working capital facilities, credit for investment projects, and leasing and foreign trade transactions. Further, the company provides transaction services, such as cash management, collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; information services comprising Datanet and Interpymes services to corporate customers; and Internet and mobile banking services. Additionally, it offers short-term and medium-to-long-term corporate lending products. Banco Macro S.A. was incorporated in 1966 and is headquartered in Buenos Aires, Argentina.

About Ohio Valley Banc

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans. In addition, it offers safe deposit box, wire transfer, credit card, home equity loans, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news. Further, the company provides automatic teller machines (ATMs), consumer finance, seasonal tax preparation, commercial property, and various liability insurance services, as well as trust and online-only consumer direct mortgage services. The company owns and operates ATMs, including off-site ATMs. It operates offices in Ohio and West Virginia. The company was founded in 1872 and is based in Gallipolis, Ohio.