Macro Bank (NYSE:BMA) vs. Chiba Bank (OTCMKTS:CHBAY) Critical Analysis

Macro Bank (NYSE:BMA) and Chiba Bank (OTCMKTS:CHBAY) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for Macro Bank and Chiba Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macro Bank	1	1	6	0	2.63
Chiba Bank	0	1	0	0	2.00

Macro Bank presently has a consensus target price of $103.60, suggesting a potential upside of 41.15%. Given Macro Bank’s stronger consensus rating and higher possible upside, analysts clearly believe Macro Bank is more favorable than Chiba Bank.

Risk and Volatility

Macro Bank has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Chiba Bank has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.

Earnings & Valuation

This table compares Macro Bank and Chiba Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Macro Bank	$4.72 billion	0.99	$231.60 million	$3.29	22.31
Chiba Bank	$2.38 billion	4.36	$490.11 million	$4.20	15.92

Chiba Bank has lower revenue, but higher earnings than Macro Bank. Chiba Bank is trading at a lower price-to-earnings ratio than Macro Bank, indicating that it is currently the more affordable of the two stocks.

Dividends

Macro Bank pays an annual dividend of $4.89 per share and has a dividend yield of 6.7%. Chiba Bank pays an annual dividend of $1.09 per share and has a dividend yield of 1.6%. Macro Bank pays out 148.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chiba Bank pays out 26.0% of its earnings in the form of a dividend.

Profitability

This table compares Macro Bank and Chiba Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Macro Bank	4.99%	6.85%	1.66%
Chiba Bank	20.92%	7.53%	0.42%

Summary

Macro Bank beats Chiba Bank on 8 of the 14 factors compared between the two stocks.

About Macro Bank

Banco Macro S.A. provides various banking products and services to retail and corporate customers in Argentina. It offers various retail banking products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines, and money transfers. The company also provides personal loans, document discounts, residential mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services, including deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services; and trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; and working capital facilities, credit for investment projects, and leasing and foreign trade transactions. Further, the company provides transaction services, such as cash management, collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; information services comprising Datanet and Interpymes services to corporate customers; and Internet and mobile banking services. Additionally, it offers short-term and medium-to-long-term corporate lending products. Banco Macro S.A. was incorporated in 1966 and is headquartered in Buenos Aires, Argentina.

About Chiba Bank

The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.