Head-To-Head Review: Guild (NYSE:GHLD) and Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY)

Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY) and Guild (NYSE:GHLD) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Profitability

This table compares Grupo Financiero Banorte SAB de CV and Guild’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Financiero Banorte SAB de CV	12.92%	21.99%	2.24%
Guild	10.88%	10.09%	2.55%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Grupo Financiero Banorte SAB de CV and Guild, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Financiero Banorte SAB de CV	0	0	0	0	0.00
Guild	0	7	2	0	2.22

Guild has a consensus target price of $18.88, indicating a potential downside of 5.67%. Given Guild’s stronger consensus rating and higher possible upside, analysts plainly believe Guild is more favorable than Grupo Financiero Banorte SAB de CV.

Dividends

Grupo Financiero Banorte SAB de CV pays an annual dividend of $3.95 per share and has a dividend yield of 8.4%. Guild pays an annual dividend of $1.00 per share and has a dividend yield of 5.0%. Grupo Financiero Banorte SAB de CV pays out 75.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Guild pays out 49.8% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Grupo Financiero Banorte SAB de CV and Guild”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Financiero Banorte SAB de CV	$22.72 billion	1.17	$3.08 billion	$5.23	9.04
Guild	$1.19 billion	1.05	$97.13 million	$2.01	9.96

Grupo Financiero Banorte SAB de CV has higher revenue and earnings than Guild. Grupo Financiero Banorte SAB de CV is trading at a lower price-to-earnings ratio than Guild, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.0% of Grupo Financiero Banorte SAB de CV shares are owned by institutional investors. Comparatively, 17.5% of Guild shares are owned by institutional investors. 78.3% of Guild shares are owned by company 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.

Risk and Volatility

Grupo Financiero Banorte SAB de CV has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Guild has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Summary

Guild beats Grupo Financiero Banorte SAB de CV on 9 of the 16 factors compared between the two stocks.

About Grupo Financiero Banorte SAB de CV

Grupo Financiero Banorte, S.A.B. de C.V., through its subsidiaries, engages in the provision of banking and financial products and services in Mexico and internationally. The company accepts checking, current, retirement, and payroll accounts; and provides loans, including mortgage, car, payroll, personal, structured, syndicated, SME loans, and credit cards, as well as letter of credit financing, acquisition funding, and import and export foreign trade financing. It is also involved in investment planning, foreign currency purchase/sale, financial advice, brokerage, asset management, investment banking, letters of credit, bank guarantees, and leasing and factoring activities. In addition, the company sells mutual funds and debt and capital instruments; issues debit cards; and provides insurance services for car, home, life, medical, employee, and SMEs, as well as cash management services for collection, trustees, payroll, and lines of credit. Further, it provides online banking, POS, payment, reconciliation, documentary collection, import bills of exchange discount, International wire transfer, remittances, storage, inventory management, logistics, marketing, and payroll services. The company was founded in 1899 and is based in Mexico City, Mexico.

About Guild

Guild Holdings Company originates, sells, and services residential mortgage loans in the United States. It operates in two segments, Origination and Servicing. The company offers residential mortgages through retail and correspondent channels. Guild Holdings Company was incorporated in 1960 and is headquartered in San Diego, California.