Grupo Financiero Galicia (NASDAQ:GGAL) vs. Bank Hapoalim (OTCMKTS:BKHYY) Head to Head Comparison

Bank Hapoalim (OTCMKTS:BKHYY) and Grupo Financiero Galicia (NASDAQ:GGAL) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Profitability

This table compares Bank Hapoalim and Grupo Financiero Galicia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank Hapoalim	20.12%	14.21%	1.16%
Grupo Financiero Galicia	12.28%	29.98%	5.86%

Dividends

Bank Hapoalim pays an annual dividend of $4.18 per share and has a dividend yield of 4.4%. Grupo Financiero Galicia pays an annual dividend of $0.57 per share and has a dividend yield of 2.0%. Bank Hapoalim pays out 48.0% of its earnings in the form of a dividend. Grupo Financiero Galicia pays out 8.4% 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Bank Hapoalim and Grupo Financiero Galicia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank Hapoalim	0	1	0	0	2.00
Grupo Financiero Galicia	1	1	2	0	2.25

Grupo Financiero Galicia has a consensus price target of $81.00, indicating a potential upside of 177.59%. Given Grupo Financiero Galicia’s stronger consensus rating and higher probable upside, analysts clearly believe Grupo Financiero Galicia is more favorable than Bank Hapoalim.

Valuation and Earnings

This table compares Bank Hapoalim and Grupo Financiero Galicia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank Hapoalim	$10.95 billion	2.30	$2.08 billion	$8.71	10.97
Grupo Financiero Galicia	$10.79 billion	0.40	$1.79 billion	$6.79	4.30

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

Risk and Volatility

Bank Hapoalim has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Grupo Financiero Galicia has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.

About Bank Hapoalim

Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Household, Private Banking, Small businesses and micro businesses, Mid-sized businesses, Large businesses, Institutional entities, and Financial management segments. The company offers account-management services, lending for various purposes, deposits, and savings plans, and capital-market service; housing loans; research and advisory services; and pension advisory and retirement planning services. It also provides products and services for the expansion of a business, advanced digital services, and a service center specializing in businesses; credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, and securities. In addition, the company offers financial services, including foreign-trade financing, financing of working capital, financing of assets overseas, complex financing transactions, syndication, and credit-risk transfers; and financing of construction projects, granting credit to customers, and issuing guarantees to buyers of homes. Further, it provides managers of mutual funds, managers of investment portfolios, and managers of provident funds, study funds, and pension funds; trading activities; underwriting services; and brokerage and custody services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.

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.