Comparing Macro Bank (BMA) and Its Rivals

Macro Bank (NYSE:BMA) is one of 920 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Macro Bank to similar businesses based on the strength of its valuation, profitability, institutional ownership, risk, earnings, analyst recommendations and dividends.

Dividends

Macro Bank pays an annual dividend of $3.67 per share and has a dividend yield of 6.1%. Macro Bank pays out 80.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 9.5% and pay out 28.9% of their earnings in the form of a dividend. Macro Bank lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of current ratings for Macro Bank and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macro Bank	1	2	5	0	2.50
Macro Bank Competitors	7458	30159	27707	1451	2.35

Macro Bank presently has a consensus price target of $101.25, indicating a potential upside of 68.50%. As a group, “Banks” companies have a potential upside of 17.19%. Given Macro Bank’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Macro Bank is more favorable than its rivals.

Earnings and Valuation

This table compares Macro Bank and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Macro Bank	$4.72 billion	$231.60 million	13.15
Macro Bank Competitors	$9.93 billion	$2.41 billion	18.77

Macro Bank’s rivals have higher revenue and earnings than Macro Bank. Macro Bank is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

47.9% of shares of all “Banks” companies are held by institutional investors. 18.3% of Macro Bank shares are held by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Macro Bank and its rivals’ 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%
Macro Bank Competitors	15.63%	9.48%	0.93%

Volatility & Risk

Macro Bank has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Macro Bank’s rivals have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Summary

Macro Bank rivals beat Macro Bank on 9 of the 15 factors compared.

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.