Head to Head Review: BBVA Banco Frances (NYSE:BBAR) versus Chiba Bank (OTCMKTS:CHBAY)

Chiba Bank (OTCMKTS:CHBAY) and BBVA Banco Frances (NYSE:BBAR) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Volatility & Risk

Chiba Bank has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, BBVA Banco Frances has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Dividends

Chiba Bank pays an annual dividend of $1.09 per share and has a dividend yield of 2.0%. BBVA Banco Frances pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Chiba Bank pays out 28.5% of its earnings in the form of a dividend. BBVA Banco Frances pays out 42.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Chiba Bank and BBVA Banco Frances’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chiba Bank	20.92%	7.55%	0.41%
BBVA Banco Frances	4.46%	7.43%	1.18%

Earnings & Valuation

This table compares Chiba Bank and BBVA Banco Frances”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chiba Bank	$2.38 billion	3.73	$490.11 million	$3.83	14.36
BBVA Banco Frances	$4.86 billion	0.79	$396.45 million	$0.95	19.86

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Chiba Bank and BBVA Banco Frances, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chiba Bank	0	0	0	0	0.00
BBVA Banco Frances	0	3	3	2	2.88

BBVA Banco Frances has a consensus price target of $17.67, suggesting a potential downside of 6.35%. Given BBVA Banco Frances’ stronger consensus rating and higher possible upside, analysts plainly believe BBVA Banco Frances is more favorable than Chiba Bank.

Summary

BBVA Banco Frances beats Chiba Bank on 9 of the 15 factors compared between the two stocks.

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.

About BBVA Banco Frances

Banco BBVA Argentina S.A. provides various banking products and services to individuals and companies in Argentina. The company provides retail banking products and services, such as checking and savings accounts, time deposits, credit cards financing, consumer and pledge loans, mortgages, insurance, and investment products to individuals; and small and medium-sized companies products and services, including financing products, factoring, checking accounts, time deposits, transactional and payroll services, insurance, and investment products to private-sector companies. It also provides corporate and investment banking products and services, such as global transaction services; global markets solutions comprising risk management and securities brokerage; long-term financing products, including project finance and syndicated loans; and corporate finance services comprising mergers and acquisitions, and capital markets advisory services to corporations and multinational companies. The company was formerly known as BBVA Banco Francés S.A. and changed its name to Banco BBVA Argentina S.A. in July 2019. Banco BBVA Argentina S.A. was incorporated in 1886 and is based in Buenos Aires, Argentina.