Head to Head Analysis: UniCredit (OTCMKTS:UNCRY) & Banco Latinoamericano de Comercio Exterior (NYSE:BLX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UniCredit	32.88%	26.06%	2.08%
Banco Latinoamericano de Comercio Exterior	27.11%	14.85%	1.80%

Risk & Volatility

UniCredit has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Banco Latinoamericano de Comercio Exterior has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UniCredit	$41.32 billion	2.50	$12.35 billion	N/A	N/A
Banco Latinoamericano de Comercio Exterior	$836.85 million	2.21	$226.88 million	$6.11	8.13

UniCredit has higher revenue and earnings than Banco Latinoamericano de Comercio Exterior.

Dividends

UniCredit pays an annual dividend of $1.09 per share and has a dividend yield of 3.2%. Banco Latinoamericano de Comercio Exterior pays an annual dividend of $2.75 per share and has a dividend yield of 5.5%. Banco Latinoamericano de Comercio Exterior pays out 45.0% of its earnings in the form of a dividend. Banco Latinoamericano de Comercio Exterior has raised its dividend for 2 consecutive years. Banco Latinoamericano de Comercio Exterior is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and target prices for UniCredit and Banco Latinoamericano de Comercio Exterior, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UniCredit	0	1	3	2	3.17
Banco Latinoamericano de Comercio Exterior	0	0	0	1	4.00

Institutional and Insider Ownership

0.3% of UniCredit shares are owned by institutional investors. Comparatively, 19.5% of Banco Latinoamericano de Comercio Exterior shares are owned by institutional investors. 0.2% of Banco Latinoamericano de Comercio Exterior shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

UniCredit beats Banco Latinoamericano de Comercio Exterior on 10 of the 15 factors compared between the two stocks.

About UniCredit

UniCredit S.p.A. provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. It offers retail, private, and wealth management solutions; and institutional investor solutions. The company also provides corporate finance advisory, rating advisory, financial sponsor, patient capital, capital structure advisory, and finance solutions, as well as securities services. In addition, it offers transactional and risk management, and strategic advisory and funding services; group trade and correspondent banking services; and payments and cash management solutions. The company serves SME, corporate, multinational corporate, financial institution, and public sector clients, as well as retail, private banking, wealth management, and family office clients. The company was founded in 1870 and is headquartered in Milan, Italy.

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.