Analyzing Grupo Aval Acciones y Valores (AVAL) & Middlefield Banc (MBCN)

Grupo Aval Acciones y Valores (NYSE: AVAL) and Middlefield Banc (NASDAQ:MBCN) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Insider and Institutional Ownership

21.9% of Grupo Aval Acciones y Valores shares are held by institutional investors. Comparatively, 26.6% of Middlefield Banc shares are held by institutional investors. 8.4% of Middlefield Banc shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Grupo Aval Acciones y Valores and Middlefield Banc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grupo Aval Acciones y Valores 7.58% 9.61% 1.05%
Middlefield Banc 19.36% 8.48% 0.87%

Volatility & Risk

Grupo Aval Acciones y Valores has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Middlefield Banc has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Grupo Aval Acciones y Valores and Middlefield Banc, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grupo Aval Acciones y Valores 0 0 1 0 3.00
Middlefield Banc 0 1 1 0 2.50

Middlefield Banc has a consensus target price of $50.50, suggesting a potential upside of 11.48%. Given Middlefield Banc’s higher probable upside, analysts clearly believe Middlefield Banc is more favorable than Grupo Aval Acciones y Valores.

Dividends

Grupo Aval Acciones y Valores pays an annual dividend of $0.40 per share and has a dividend yield of 4.8%. Middlefield Banc pays an annual dividend of $1.08 per share and has a dividend yield of 2.4%. Grupo Aval Acciones y Valores pays out 61.5% of its earnings in the form of a dividend. Middlefield Banc pays out 34.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings & Valuation

This table compares Grupo Aval Acciones y Valores and Middlefield Banc’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grupo Aval Acciones y Valores $8.38 billion 0.35 $713.10 million $0.65 12.82
Middlefield Banc $33.95 million 4.28 $6.41 million $3.10 14.61

Grupo Aval Acciones y Valores has higher revenue and earnings than Middlefield Banc. Grupo Aval Acciones y Valores is trading at a lower price-to-earnings ratio than Middlefield Banc, indicating that it is currently the more affordable of the two stocks.

Summary

Middlefield Banc beats Grupo Aval Acciones y Valores on 8 of the 15 factors compared between the two stocks.

About Grupo Aval Acciones y Valores

Grupo Aval Acciones y Valores SA is a Colombia-based holding company primarily engaged, through its subsidiaries, in the acquisition, purchase and sale of stocks, bonds and other securities of companies active in the financial sector. The Company provides a variety of financial services and products across the Colombian market, ranging from traditional banking services, such as loans and deposits to pension and severance fund management, as well as the provision of legal representation services.The Company owns such subsidiaries as Banco de Bogota SA, Banco Popular SA, among others. In April 2013, the Company acquired BBVA Horizonte Sociedad Administradora de Fondos de Pensiones y Cesantias SA from Banco Bilbao Vizcaya Argentaria SA. In December 2013, Banco Bilbao Vizcaya sold the entirety of its about 98.92% direct and indirect interest in Banco Bilbao Vizacaya Argentaria (Panama) SA (BBVA Panama) to Leasing Bogota SA, Panama, a subsidiary of the Company.

About Middlefield Banc

Middlefield Banc Corp. is a bank holding company. The Company’s subsidiaries include The Middlefield Banking Company (MBC) and EMORECO Inc. MBC is engaged in the general commercial banking business in northeastern and central Ohio. MBC offers customers a range of banking services, including checking, savings, money market accounts, time certificates of deposit, commercial loans, real estate loans, various consumer loans, safe deposit facilities and travelers’ checks. MBC offers online banking and bill payment services to individuals, and online cash management services to business customers through its Website at www.middlefieldbank.com. EMORECO engages in the resolution and disposition of troubled assets in central Ohio. MBC’s loan products include operational and working capital loans, loans to finance capital purchases, term business loans, residential construction loans, selected guaranteed or subsidized loan programs for small businesses, and consumer installment loans.

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