Head-To-Head Survey: Grupo Financiero Galicia (NASDAQ:GGAL) and Western New England Bancorp (NASDAQ:WNEB)

Grupo Financiero Galicia (NASDAQ:GGAL) and Western New England Bancorp (NASDAQ:WNEB) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk & Volatility

Grupo Financiero Galicia has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Western New England Bancorp has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Institutional and Insider Ownership

67.9% of Western New England Bancorp shares are owned by institutional investors. 6.6% of Western New England Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Grupo Financiero Galicia pays an annual dividend of $4.86 per share and has a dividend yield of 9.6%. Western New England Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Grupo Financiero Galicia pays out 245.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western New England Bancorp pays out 31.5% of its earnings in the form of a dividend.

Profitability

This table compares Grupo Financiero Galicia and Western New England Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Financiero Galicia	7.13%	18.96%	3.47%
Western New England Bancorp	13.27%	7.25%	0.65%

Analyst Recommendations

This is a breakdown of current recommendations for Grupo Financiero Galicia and Western New England Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Financiero Galicia	1	3	2	1	2.43
Western New England Bancorp	0	2	2	0	2.50

Grupo Financiero Galicia currently has a consensus price target of $64.00, indicating a potential upside of 26.38%. Western New England Bancorp has a consensus price target of $15.00, indicating a potential upside of 13.04%. Given Grupo Financiero Galicia’s higher probable upside, analysts clearly believe Grupo Financiero Galicia is more favorable than Western New England Bancorp.

Valuation & Earnings

This table compares Grupo Financiero Galicia and Western New England Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Financiero Galicia	$10.56 billion	0.77	$170.02 million	$1.98	25.58
Western New England Bancorp	$86.58 million	3.08	$15.27 million	$0.89	14.91

Grupo Financiero Galicia has higher revenue and earnings than Western New England Bancorp. Western New England Bancorp is trading at a lower price-to-earnings ratio than Grupo Financiero Galicia, indicating that it is currently the more affordable of the two stocks.

Summary

Grupo Financiero Galicia beats Western New England Bancorp on 10 of the 16 factors compared between the two stocks.

About Grupo Financiero Galicia

Grupo Financiero Galicia S.A., a financial service holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, NaranjaX, Insurance, and Other Businesses segments. It also offers personal loans; express and mortgage loans; pledge and credit card loans; credit and debit cards; and online banking services, as well as savings, deposits, and checking accounts related services. In addition, the company offers financing products; consumer finance and digital banking services; electronic check; global custody services; Fima funds; financial and stock market services to individuals, companies, and financial institutions; foreign trade services; and capital market and investment banking products that include debt securities, short-term securities, and financial trusts. Further, it provides robbery, personal accident, life collective, home, life, integral, pet, surety, and technical insurance products. Additionally, the company offers private banking services to high net worth individuals; and operates digital investment platform. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.

About Western New England Bancorp

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides a range of commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including interest-bearing and noninterest-bearing checking, commercial checking, business, nonprofit and municipal checking, savings, money market and sweep, individual retirement, and other savings accounts; time deposits; certificates of deposit; and interest on lawyer's trust accounts. It also offers residential real estate loans, including first mortgages, home equity loans, and home equity lines, and secured by one-to-four family residential properties; commercial and industrial loans, such as letters of credit, revolving lines of credit, working capital, equipment financing, and term loans; commercial mortgage loans; construction and land development loans; home equity loans comprising home equity revolving loans and lines of credit; and consumer loans, including automobile, spa and pool, collateral, and personal lines of credit. In addition, the company provides automated teller machine (ATM), telephone and online banking, remote deposit capture, cash management, overdraft and safe deposit facility, and night deposit services. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. The company was founded in 1853 and is headquartered in Westfield, Massachusetts.