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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Two River Bancorp and Grupo Financiero Santander Mexico S.A. B. de C.V., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Two River Bancorp 0 0 0 0 N/A
Grupo Financiero Santander Mexico S.A. B. de C.V. 0 5 1 0 2.17

Grupo Financiero Santander Mexico S.A. B. de C.V. has a consensus target price of $10.30, indicating a potential upside of 33.07%. 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 Two River Bancorp.

Institutional & Insider Ownership

23.3% of Two River Bancorp shares are owned by institutional investors. Comparatively, 29.5% of Grupo Financiero Santander Mexico S.A. B. de C.V. shares are owned by institutional investors. 16.5% of Two River Bancorp shares are owned by company 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.

Dividends

Two River Bancorp pays an annual dividend of $0.18 per share and has a dividend yield of 1.0%. 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 7.1%. Two River Bancorp pays out 17.9% 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.

Profitability

This table compares Two River Bancorp 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
Two River Bancorp 20.45% 8.29% 0.88%
Grupo Financiero Santander Mexico S.A. B. de C.V. 17.80% 15.27% 1.38%

Risk & Volatility

Two River Bancorp has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Grupo Financiero Santander Mexico S.A. B. de C.V. has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Earnings & Valuation

This table compares Two River Bancorp and Grupo Financiero Santander Mexico S.A. B. de C.V.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Two River Bancorp $40.11 million 3.82 $8.63 million $1.01 17.99
Grupo Financiero Santander Mexico S.A. B. de C.V. $4.95 billion 1.04 $884.61 million $0.68 11.38

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

Summary

Grupo Financiero Santander Mexico S.A. B. de C.V. beats Two River Bancorp on 9 of the 15 factors compared between the two stocks.

About Two River Bancorp

Two River Bancorp is the holding company for Two River Community Bank (the Bank). The Company acts as an independent community financial services provider. The Company’s segment is community banking operations. The Bank is a state-chartered commercial bank. The Bank offers a range of banking services, including demand, savings and time deposits, and commercial loans, residential loans and consumer/installment loans to small and medium-sized businesses, not-for-profit organizations, professionals and individuals primarily in Monmouth, Middlesex and Union Counties, New Jersey. The Bank also offers its customers various banking products, such as night depository, wire transfers, money orders, automated teller machines, direct deposit, telephone and Internet banking and corporate business services. It also offers customers a range of electronic banking services. The Bank’s deposits consist of checking accounts, savings accounts, money market accounts and certificates of deposit.

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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