Bancolombia (NYSE:CIB) and Banco Bilbao Vizcaya Argentaria (NYSE:BBVA) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Analyst Ratings

This is a summary of current ratings for Bancolombia and Banco Bilbao Vizcaya Argentaria, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bancolombia 0 2 2 0 2.50
Banco Bilbao Vizcaya Argentaria 2 1 3 0 2.17

Bancolombia currently has a consensus price target of $54.00, indicating a potential downside of 0.06%. Given Bancolombia’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Bancolombia is more favorable than Banco Bilbao Vizcaya Argentaria.

Risk & Volatility

Bancolombia has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Banco Bilbao Vizcaya Argentaria has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Dividends

Bancolombia pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. Banco Bilbao Vizcaya Argentaria pays an annual dividend of $0.18 per share and has a dividend yield of 3.6%. Bancolombia pays out 34.5% of its earnings in the form of a dividend. Banco Bilbao Vizcaya Argentaria pays out 20.5% 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. Bancolombia has increased its dividend for 2 consecutive years and Banco Bilbao Vizcaya Argentaria has increased its dividend for 7 consecutive years. Banco Bilbao Vizcaya Argentaria is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

7.2% of Bancolombia shares are owned by institutional investors. Comparatively, 3.1% of Banco Bilbao Vizcaya Argentaria shares are owned by institutional investors. 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.

Profitability

This table compares Bancolombia and Banco Bilbao Vizcaya Argentaria’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bancolombia 17.06% 13.94% 1.67%
Banco Bilbao Vizcaya Argentaria 20.46% 8.52% 0.67%

Valuation and Earnings

This table compares Bancolombia and Banco Bilbao Vizcaya Argentaria’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bancolombia $6.03 billion 2.15 $797.66 million $3.48 15.53
Banco Bilbao Vizcaya Argentaria $20.46 billion 1.64 $6.29 billion $0.88 5.72

Banco Bilbao Vizcaya Argentaria has higher revenue and earnings than Bancolombia. Banco Bilbao Vizcaya Argentaria is trading at a lower price-to-earnings ratio than Bancolombia, indicating that it is currently the more affordable of the two stocks.

Bancolombia Company Profile

Bancolombia S.A. provides various banking products and services to individual, corporate, and government customers in Colombia, Latin America, and the Caribbean region. The company operates in nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, Off Shore, and All Other. It offers checking and savings accounts, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, overdrafts, and financing for industrial projects; mortgage banking and factoring services; and financial and operating leasing services. The company also provides capital market products, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services, including selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency transaction services; and life, auto, commercial, and homeowner's insurance products. Further, the company provides investment banking services comprising project and acquisition finance, debt and equity capital markets, principal investments, merger and acquisition, restructurings, and structured corporate lending; trust and asset management services, such as money market accounts, mutual and pension funds, private equity funds, payment trust, custody, and corporate trust; digital banking and revolving credit facility services. Additionally, it is involved in transportation, real estate brokerage, maintenance and remodeling, advertising and marketing, and outsourcing activities. The company operates 1,153 branches, 10,349 banking correspondents, and 590 mobile service spots; 227 kiosks; and 5,630 automatic teller machines. Bancolombia S.A. was founded in 1945 and is headquartered in MedellĂ­n, Colombia.

Banco Bilbao Vizcaya Argentaria Company Profile

Banco Bilbao Vizcaya Argentaria, S.A., together with its subsidiaries, provides retail and wholesale banking, asset management, and private banking services. The company accepts various deposits, such as current and savings accounts, term deposits, subordinated deposits, and other accounts. It also offers loan products; and foreclosed real-estate assets from residential mortgages and developers, as well as lending to developers. In addition, the company provides credit cards; and corporate and business banking, corporate and investment banking, and insurance. It operates in Spain, Mexico, South America, the United States, Turkey, Asia-Pacific, and rest of Europe. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.

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