Head-To-Head Review: Macro Bank (BMA) & Its Peers

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

Insider and Institutional Ownership

47.8% of shares of all “Banks” companies are owned by institutional investors. 18.3% of Macro Bank shares are owned by insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Macro Bank and its competitors’ 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	15.72%	9.53%	0.93%

Volatility and Risk

Macro Bank has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Macro Bank’s competitors have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.

Dividends

Macro Bank pays an annual dividend of $3.66 per share and has a dividend yield of 6.2%. Macro Bank pays out 80.1% 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 9.4% and pay out 28.9% of their earnings in the form of a dividend. Macro Bank lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Macro Bank	$4,024.32 billion	$231.60 million	12.89
Macro Bank Competitors	$222.02 billion	$2.41 billion	16.81

Macro Bank has higher revenue, but lower earnings than its competitors. Macro Bank is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Macro Bank and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macro Bank	1	2	4	0	2.43
Macro Bank Competitors	7463	30184	27745	1456	2.35

Macro Bank currently has a consensus price target of $101.25, indicating a potential upside of 71.91%. As a group, “Banks” companies have a potential upside of 15.72%. Given Macro Bank’s stronger consensus rating and higher probable upside, equities analysts plainly believe Macro Bank is more favorable than its competitors.

Summary

Macro Bank competitors beat Macro Bank on 8 of the 15 factors compared.

Macro Bank Company Profile

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.