Analyzing BNP PARIBAS/S (BNPQY) & GRUPO AVAL ACCI/S (AVAL)

BNP PARIBAS/S (OTCMKTS:BNPQY) and GRUPO AVAL ACCI/S (NYSE:AVAL) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Insider & Institutional Ownership

0.9% of BNP PARIBAS/S shares are held by institutional investors. Comparatively, 18.8% of GRUPO AVAL ACCI/S shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

BNP PARIBAS/S pays an annual dividend of $1.49 per share and has a dividend yield of 6.0%. GRUPO AVAL ACCI/S pays an annual dividend of $0.29 per share and has a dividend yield of 3.8%. BNP PARIBAS/S pays out 44.1% of its earnings in the form of a dividend. GRUPO AVAL ACCI/S pays out 48.3% 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. BNP PARIBAS/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares BNP PARIBAS/S and GRUPO AVAL ACCI/S’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BNP PARIBAS/S $50.21 billion 1.24 $8.89 billion $3.38 7.41
GRUPO AVAL ACCI/S $7.02 billion 0.38 $657.60 million $0.60 12.77

BNP PARIBAS/S has higher revenue and earnings than GRUPO AVAL ACCI/S. BNP PARIBAS/S is trading at a lower price-to-earnings ratio than GRUPO AVAL ACCI/S, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

BNP PARIBAS/S has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, GRUPO AVAL ACCI/S has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Profitability

This table compares BNP PARIBAS/S and GRUPO AVAL ACCI/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BNP PARIBAS/S 17.70% 7.12% 0.34%
GRUPO AVAL ACCI/S 11.06% 9.49% 1.03%

Analyst Recommendations

This is a breakdown of current recommendations for BNP PARIBAS/S and GRUPO AVAL ACCI/S, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BNP PARIBAS/S 0 1 0 0 2.00
GRUPO AVAL ACCI/S 0 2 1 0 2.33

GRUPO AVAL ACCI/S has a consensus price target of $8.00, suggesting a potential upside of 4.44%. Given GRUPO AVAL ACCI/S’s stronger consensus rating and higher probable upside, analysts plainly believe GRUPO AVAL ACCI/S is more favorable than BNP PARIBAS/S.

Summary

BNP PARIBAS/S beats GRUPO AVAL ACCI/S on 8 of the 15 factors compared between the two stocks.

BNP PARIBAS/S Company Profile

BNP Paribas SA provides a range of banking and financial services in France and internationally. The company operates through two divisions, Retail Banking and Services; and Corporate and Institutional Banking. It offers long-term corporate vehicle leasing, and rental and other financing solutions; and digital banking and investment services, cash management, and factoring services to corporate clients, as well as wealth management services. The company also provides credit solutions for individuals under the Cetelem, Cofinoga, and Findomestic brand names; savings and protection solutions, including insuring individuals and their personal projects and assets; and asset management, private banking, and real estate services. In addition, it offers global market services, including investment, hedging, financing, and research across asset classes; security services comprising clearing, custody, and asset and fund services, as well as corporate trust, and market and financing services; and corporate trade and treasury, debt financing, specialized financing, strategic advisory, mergers and acquisition, and equity capital market services for institutional and corporate clients. The company was formerly known as Banque Nationale de Paris and changed its name to BNP Paribas SA in May 2000. BNP Paribas SA was founded in 1848 and is headquartered in Paris, France.

GRUPO AVAL ACCI/S Company Profile

Grupo Aval Acciones y Valores S.A. provides a range of financial services and products to public and private sector customers in Colombia and Central America. The company's deposit products and services include checking accounts, savings accounts, and time deposits, as well as other deposits consisting of deposits from correspondent accounts, cashier checks, and collection services. It also provides loan products, such as commercial loans that comprise general purpose loans, working capital loans, loans funded by development banks, corporate credit cards, and overdraft loans; consumer loans comprising personal loans, automobile and other vehicle loans, credit cards, overdrafts, loans funded by development banks, and general purpose loans; microcredit loans; and mortgage loans. In addition, the company offers pension and severance fund management services; and trust, bonded warehousing and brokerage transactions, real estate escrow, merchandise and document storage and deposit, customs agency, cargo management, surety bond and merchandise distribution, bancassurance, and payment and collection services, as well as engages in deposit and lending operations in foreign currencies. Further, it is involved in merchant and investment banking activities; trading activities that include fixed income trading, and derivatives and foreign exchange operations, as well as the provision of treasury, pension plan administration, investment fund advice, financial advisory, leasing, private banking, and insurance services. As of December 31, 2017, the company operated through a network of 1,421 branches and 3,781 ATMs in Colombia; and 350 branches and 1,993 ATMs in Central America. Grupo Aval Acciones y Valores S.A. was founded in 1994 and is based in Bogotá, Colombia.

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