Head to Head Review: SHF (NASDAQ:SHFS) versus Banco Latinoamericano de Comercio Exterior (NYSE:BLX)

Banco Latinoamericano de Comercio Exterior (NYSE:BLX) and SHF (NASDAQ:SHFS) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

19.5% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. Comparatively, 29.2% of SHF shares are held by institutional investors. 5.8% of SHF shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Banco Latinoamericano de Comercio Exterior and SHF, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Latinoamericano de Comercio Exterior	0	0	0	1	4.00
SHF	1	0	0	0	1.00

Risk and Volatility

Banco Latinoamericano de Comercio Exterior has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, SHF has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares Banco Latinoamericano de Comercio Exterior and SHF”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Latinoamericano de Comercio Exterior	$836.85 million	2.28	$226.88 million	$6.06	8.46
SHF	$7.67 million	0.00	-$2.16 million	($11.88)	-0.00

Banco Latinoamericano de Comercio Exterior has higher revenue and earnings than SHF. SHF is trading at a lower price-to-earnings ratio than Banco Latinoamericano de Comercio Exterior, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Banco Latinoamericano de Comercio Exterior and SHF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Latinoamericano de Comercio Exterior	27.91%	13.96%	1.68%
SHF	-47.33%	-90.25%	-41.71%

Summary

Banco Latinoamericano de Comercio Exterior beats SHF on 9 of the 12 factors compared between the two stocks.

About Banco Latinoamericano de Comercio Exterior

Banco Latinoamericano de Comercio Exterior, S. A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates in two segments, Commercial and Treasury. It offers bilateral loans; structured loans including syndicated and clubbed, such as acquisition and pre-export financing, A/B loan financing, bridge loans, and liability management; and project financing. The company also provides letter of credit comprising import and export letters of credit, and credit discounting and financing, as well as usance payable at sight; stand-by services; bank guarantees, including first demand and local guarantees; import and export documentary collection; irrevocable reimbursement undertaking; and canal tolls. In addition, it offers liquidity and investment solutions, such as time deposits, DDA accounts, Yankee certificate of deposits, and EMTN private placement services, as well as supply chain finance services. The company primarily serves financial institutions, corporations, and sovereigns and state-owned entities. Banco Latinoamericano de Comercio Exterior, S. A.was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S. A. in June 2009. The company was founded in 1975 and is headquartered in Panama City, the Republic of Panama.

About SHF

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.