Financial Review: MFC Bancorp (MFCB) vs. Banco Macro (NYSE:BMA)

MFC Bancorp (NYSE:MFCB) and Banco Macro (NYSE:BMA) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings for MFC Bancorp and Banco Macro, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MFC Bancorp 0 1 0 0 2.00
Banco Macro 0 1 2 0 2.67

Banco Macro has a consensus price target of $50.00, suggesting a potential upside of 17.90%. Given Banco Macro’s stronger consensus rating and higher possible upside, analysts plainly believe Banco Macro is more favorable than MFC Bancorp.

Insider and Institutional Ownership

32.1% of MFC Bancorp shares are held by institutional investors. Comparatively, 21.3% of Banco Macro shares are held by institutional investors. 1.9% of MFC Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

MFC Bancorp has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Banco Macro has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Dividends

Banco Macro pays an annual dividend of $2.23 per share and has a dividend yield of 5.3%. MFC Bancorp does not pay a dividend. Banco Macro pays out 28.5% of its earnings in the form of a dividend.

Profitability

This table compares MFC Bancorp and Banco Macro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MFC Bancorp N/A N/A N/A
Banco Macro 22.36% 27.90% 5.08%

Valuation and Earnings

This table compares MFC Bancorp and Banco Macro’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MFC Bancorp $211.30 million 0.53 -$36.91 million N/A N/A
Banco Macro $2.15 billion 1.30 $558.39 million $7.82 5.42

Banco Macro has higher revenue and earnings than MFC Bancorp.

Summary

Banco Macro beats MFC Bancorp on 10 of the 14 factors compared between the two stocks.

MFC Bancorp Company Profile

MFC Bancorp Ltd., a merchant banking company, provides various financial services for corporations and institutions worldwide. It operates through two segments, Merchant Banking and All Other. The company specializes in markets that are not adequately addressed by traditional sources of supply and finance, with focus on providing solutions for small and medium sized enterprises. It offers bank guarantees, letters of credit, factoring, other financing transactions, proprietary investing and advisory services, and merchant banking products and services. The company also holds various production assets, including a zinc alloy processing facility located in Slovakia; a natural gas power plant located in Alberta, Canada and a hydro-electric power plant located in Africa; a non-ferrous rolling mill in Germany; and a natural gas production and processing facility in Alberta, Canada, as well as a mining sub-lease of the lands upon which the Wabush iron ore mine is situated in Newfoundland and Labrador, Canada. In addition, it has interests in the hydrocarbon interests located in west central Alberta, Canada; and is involved in business activities related to medical equipment, instruments, supplies, and services. The company was formerly known as MFC Industrial Ltd. and changed its name to MFC Bancorp Ltd. in July 2017. MFC Bancorp Ltd. was incorporated in 2017 and is based in Dublin, Ireland.

Banco Macro Company Profile

Banco Macro S.A. provides various banking products and services to individuals and corporate customers in Argentina. It offers various retail products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines (ATMs), and money transfers. The company also provides personal loans, document discounts, mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services that include deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services. Further, the company provides trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; transaction services, such as collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; and information services, such as Datanet and Interpymes services to corporate customers. As of December 31, 2017, it operated through a network of 445 branches, 1,443 ATMs, 912 self-service terminals, and service points. Banco Macro S.A. also offers Internet banking services. The company was incorporated in 1988 and is headquartered in Buenos Aires, Argentina.

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