Galicia Financial Group (NASDAQ: GGAL) and Royal Bank of Scotland Group (NYSE:RBS) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Insider and Institutional Ownership

31.2% of Galicia Financial Group shares are held by institutional investors. Comparatively, 0.6% of Royal Bank of Scotland Group shares are held by institutional investors. 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Galicia Financial Group and Royal Bank of Scotland Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Galicia Financial Group 1 1 3 0 2.40
Royal Bank of Scotland Group 0 7 4 0 2.36

Galicia Financial Group currently has a consensus price target of $100.00, suggesting a potential upside of 134.19%. Given Galicia Financial Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Galicia Financial Group is more favorable than Royal Bank of Scotland Group.

Dividends

Galicia Financial Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Royal Bank of Scotland Group does not pay a dividend.

Risk and Volatility

Galicia Financial Group has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Royal Bank of Scotland Group has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Valuation & Earnings

This table compares Galicia Financial Group and Royal Bank of Scotland Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Galicia Financial Group $4.19 billion 1.45 $503.09 million N/A N/A
Royal Bank of Scotland Group $19.56 billion 2.18 $1.78 billion $0.65 10.95

Royal Bank of Scotland Group has higher revenue and earnings than Galicia Financial Group.

Profitability

This table compares Galicia Financial Group and Royal Bank of Scotland Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Galicia Financial Group N/A N/A N/A
Royal Bank of Scotland Group 11.77% 7.04% 0.46%

Summary

Royal Bank of Scotland Group beats Galicia Financial Group on 8 of the 12 factors compared between the two stocks.

Galicia Financial Group Company Profile

Grupo Financiero Galicia SA is a holding company, which engages in banking, insurance, and the issuance of certificates of deposit through its subsidiaries. Its other activities include intercompany e-commerce, custody services, securities-related representations, mandates, and commissions. The company was founded on September 14, 1999 and is headquartered in Buenos Aires, Argentina.

Royal Bank of Scotland Group Company Profile

The Royal Bank of Scotland Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. It operates through Personal & Business Banking, Commercial & Private Banking, RBS International, and NatWest Markets segments. The company offers savings and current accounts; secured personal loans, and business lending and asset-backed lending products; invoice financing and other financing products; and insurance products and credit cards. It also provides unitized fund, rate, portfolio management, payment, liquidity management, financial planning, and currency products. In addition, the company offers personal and business banking, commercial and private banking, wealth planning, investment management, risk management, and trading services to retail banking, mass affluent, small business, and high net worth customers. The Royal Bank of Scotland Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.

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