Banco Latinoamericano de Comercio Exterior (NYSE:BLX) vs. GBank Financial (NASDAQ:GBFH) Critical Review

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

Risk and Volatility

GBank Financial has a beta of 0.03, meaning that its stock price is 97% less volatile than the S&P 500. Comparatively, Banco Latinoamericano de Comercio Exterior has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Insider and Institutional Ownership

19.5% of Banco Latinoamericano de Comercio Exterior shares are owned by institutional investors. 32.4% of GBank Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GBank Financial	15.44%	14.42%	1.75%
Banco Latinoamericano de Comercio Exterior	27.77%	13.77%	1.75%

Analyst Ratings

This is a summary of recent ratings for GBank Financial and Banco Latinoamericano de Comercio Exterior, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GBank Financial	1	1	4	0	2.50
Banco Latinoamericano de Comercio Exterior	0	0	0	1	4.00

GBank Financial currently has a consensus target price of $37.33, suggesting a potential upside of 85.37%. Given GBank Financial’s higher possible upside, analysts plainly believe GBank Financial is more favorable than Banco Latinoamericano de Comercio Exterior.

Valuation and Earnings

This table compares GBank Financial 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
GBank Financial	$109.61 million	2.67	$20.93 million	$1.28	15.73
Banco Latinoamericano de Comercio Exterior	$836.85 million	2.47	$226.88 million	$6.06	9.14

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

Summary

Banco Latinoamericano de Comercio Exterior beats GBank Financial on 8 of the 14 factors compared between the two stocks.

About GBank Financial

GBank Financial Holdings Inc. operates as a bank holding company for GBank which provides banking services to commercial and consumer customers principally in Nevada. The company offers business and personal checking and savings accounts. GBank Financial Holdings Inc. is based in Las Vegas, Nevada.

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.