Civista Bancshares (NASDAQ: CIVB) and Grupo Financiero Santander Mexico S.A. B. de C.V. (NYSE:BSMX) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Earnings & Valuation

This table compares Civista Bancshares and Grupo Financiero Santander Mexico S.A. B. de C.V.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Civista Bancshares $67.38 million 3.41 $13.32 million $1.31 17.23
Grupo Financiero Santander Mexico S.A. B. de C.V. $2.91 billion 3.92 $921.73 million $0.68 12.38

Grupo Financiero Santander Mexico S.A. B. de C.V. has higher revenue and earnings than Civista Bancshares. Grupo Financiero Santander Mexico S.A. B. de C.V. is trading at a lower price-to-earnings ratio than Civista Bancshares, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Civista Bancshares has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Grupo Financiero Santander Mexico S.A. B. de C.V. has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Dividends

Civista Bancshares pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Grupo Financiero Santander Mexico S.A. B. de C.V. pays an annual dividend of $0.55 per share and has a dividend yield of 6.5%. Civista Bancshares pays out 21.4% of its earnings in the form of a dividend. Grupo Financiero Santander Mexico S.A. B. de C.V. pays out 80.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

41.6% of Civista Bancshares shares are owned by institutional investors. Comparatively, 31.0% of Grupo Financiero Santander Mexico S.A. B. de C.V. shares are owned by institutional investors. 4.8% of Civista Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Civista Bancshares and Grupo Financiero Santander Mexico S.A. B. de C.V., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Civista Bancshares 0 1 3 0 2.75
Grupo Financiero Santander Mexico S.A. B. de C.V. 0 4 1 0 2.20

Civista Bancshares presently has a consensus price target of $24.38, indicating a potential upside of 8.00%. Grupo Financiero Santander Mexico S.A. B. de C.V. has a consensus price target of $10.30, indicating a potential upside of 22.33%. Given Grupo Financiero Santander Mexico S.A. B. de C.V.’s higher probable upside, analysts plainly believe Grupo Financiero Santander Mexico S.A. B. de C.V. is more favorable than Civista Bancshares.

Profitability

This table compares Civista Bancshares and Grupo Financiero Santander Mexico S.A. B. de C.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Civista Bancshares 21.56% 10.66% 1.06%
Grupo Financiero Santander Mexico S.A. B. de C.V. 17.80% 15.27% 1.38%

About Civista Bancshares

Civista Bancshares, Inc. is a financial holding company. The Company, through the subsidiary bank, Civista Bank, is primarily engaged in the business of community banking. Civista Bank, located in Erie, Crawford, Champaign, Cuyahoga, Franklin, Logan, Madison, Montgomery, Summit, Huron, Ottawa and Richland Counties, Ohio, conducts a general banking business that involves collecting customer deposits, making loans, purchasing securities, and offering Trust services. The Company’s loan portfolio consists of commercial and agriculture, commercial real estate-owner occupied, commercial real estate non-owner occupied, residential real estate, real estate construction, consumer and other. Its securities are classified as available-for-sale (AFS) securities. Its deposits include non-interest-bearing demand deposits; interest-bearing demand deposits; savings account, including money market deposit accounts, and certificates of deposit, including individual retirement accounts (IRAs).

About Grupo Financiero Santander Mexico S.A. B. de C.V.

Grupo Financiero Santander Mexico SAB de CV, formerly Santander Mexico Financial Group SAB de CV or Grupo Financiero Santander SAB de CV, is a Mexico-based financial institution. The Company is primarily engaged in the provision of multiple banking services, securities brokerage, financial advice services, as well as other related investment activities. The Company offers its services to both, individual and corporate clients. The Company owns such principal subsidiaries as Banco Santander (Mexico) SA, Casa de Bolsa Santander SA de CV and Zurich Santander Seguros Mexico S.A.

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