Head-To-Head Comparison: Moody’s (NYSE:MCO) vs. Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY)

Moody’s (NYSE:MCO) and Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Dividends

Moody’s pays an annual dividend of $4.12 per share and has a dividend yield of 0.9%. Grupo Financiero Banorte SAB de CV pays an annual dividend of $4.38 per share and has a dividend yield of 8.3%. Moody’s pays out 29.5% of its earnings in the form of a dividend. Grupo Financiero Banorte SAB de CV pays out 77.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Moody’s has raised its dividend for 16 consecutive years.

Profitability

This table compares Moody’s and Grupo Financiero Banorte SAB de CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Moody’s	31.69%	70.97%	17.98%
Grupo Financiero Banorte SAB de CV	14.23%	22.08%	2.24%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Moody’s and Grupo Financiero Banorte SAB de CV, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Moody’s	0	6	12	1	2.74
Grupo Financiero Banorte SAB de CV	0	1	0	0	2.00

Moody’s currently has a consensus target price of $541.83, suggesting a potential upside of 19.58%. Given Moody’s’ stronger consensus rating and higher possible upside, equities analysts plainly believe Moody’s is more favorable than Grupo Financiero Banorte SAB de CV.

Risk & Volatility

Moody’s has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Grupo Financiero Banorte SAB de CV has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

92.1% of Moody’s shares are owned by institutional investors. Comparatively, 0.0% of Grupo Financiero Banorte SAB de CV shares are owned by institutional investors. 0.1% of Moody’s shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Moody’s and Grupo Financiero Banorte SAB de CV”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Moody’s	$7.72 billion	10.26	$2.46 billion	$13.95	32.48
Grupo Financiero Banorte SAB de CV	$21.89 billion	1.36	$3.07 billion	$5.67	9.32

Grupo Financiero Banorte SAB de CV has higher revenue and earnings than Moody’s. Grupo Financiero Banorte SAB de CV is trading at a lower price-to-earnings ratio than Moody’s, indicating that it is currently the more affordable of the two stocks.

Summary

Moody’s beats Grupo Financiero Banorte SAB de CV on 15 of the 18 factors compared between the two stocks.

About Moody’s

Moody’s Corporation operates as an integrated risk assessment firm worldwide. It operates in two segments, Moody’s Analytics and Moody’s Investors Services. The Moody’s Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets. It also offers credit research, credit models and analytics, economics data and models, and structured finance solutions; data sets on companies and securities; and SaaS solutions supporting banking, insurance, and know your customer workflows. The Moody’s Investors Service segment publishes credit ratings and provides assessment services on various debt obligations, programs and facilities, and entities that issue such obligations, such as various corporate, financial institution, and governmental obligations, as well as structured finance securities. The company was formerly known as Dun and Bradstreet Company and changed its name to Moody’s Corporation in September 2000. Moody’s Corporation was founded in 1900 and is headquartered in New York, New York.

About Grupo Financiero Banorte SAB de CV

Grupo Financiero Banorte, S.A.B. de C.V., through its subsidiaries, engages in the provision of banking and financial products and services in Mexico and internationally. The company accepts checking, current, retirement, and payroll accounts; and provides loans, including mortgage, car, payroll, personal, structured, syndicated, SME loans, and credit cards, as well as letter of credit financing, acquisition funding, and import and export foreign trade financing. It is also involved in investment planning, foreign currency purchase/sale, financial advice, brokerage, asset management, investment banking, letters of credit, bank guarantees, and leasing and factoring activities. In addition, the company sells mutual funds and debt and capital instruments; issues debit cards; and provides insurance services for car, home, life, medical, employee, and SMEs, as well as cash management services for collection, trustees, payroll, and lines of credit. Further, it provides online banking, POS, payment, reconciliation, documentary collection, import bills of exchange discount, International wire transfer, remittances, storage, inventory management, logistics, marketing, and payroll services. The company was founded in 1899 and is based in Mexico City, Mexico.