Reviewing Grupo Cibest (NYSE:CIB) and DBS Group (OTCMKTS:DBSDY)

DBS Group (OTCMKTS:DBSDY) and Grupo Cibest (NYSE:CIB) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Insider and Institutional Ownership

0.2% of DBS Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for DBS Group and Grupo Cibest, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DBS Group	0	0	0	1	4.00
Grupo Cibest	3	5	1	0	1.78

Grupo Cibest has a consensus price target of $59.20, indicating a potential downside of 10.12%. Given Grupo Cibest’s higher possible upside, analysts clearly believe Grupo Cibest is more favorable than DBS Group.

Earnings & Valuation

This table compares DBS Group and Grupo Cibest”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DBS Group	$28.07 billion	4.34	$8.37 billion	N/A	N/A
Grupo Cibest	$10.55 billion	1.50	$1.25 billion	$3.66	18.00

DBS Group has higher revenue and earnings than Grupo Cibest.

Volatility & Risk

DBS Group has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Grupo Cibest has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Dividends

DBS Group pays an annual dividend of $7.14 per share and has a dividend yield of 4.2%. Grupo Cibest pays an annual dividend of $4.06 per share and has a dividend yield of 6.2%. Grupo Cibest pays out 110.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares DBS Group and Grupo Cibest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DBS Group	N/A	N/A	N/A
Grupo Cibest	8.53%	24.02%	2.63%

About DBS Group

DBS Group Holdings Ltd provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. The company’s Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. Its Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The company’s Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore.

About Grupo Cibest

Bancolombia S.A., together with its subsidiaries, provides banking products and services in Colombia and internationally. The company operates through nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, International Banking, and All Other. It offers checking and savings accounts, money market accounts, time deposits, 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, and overdrafts; factoring; and financial and operating leasing services. The company provides hedging instruments, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services comprising selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency and trade finance solutions; letters of credit and bills collection; insurance and bancassurance products; telephone and mobile phone banking services; and online and computer banking services. Further, the company provides project and acquisition finance, loan syndication, corporate loans, debt and equity capital markets, principal investments, mergers and acquisition, hedging strategy advisories, restructurings, and structured financing; mutual and pension funds, private equity funds, payment and corporate trust, and custody; internet-based trading platform; inter-bank lending and repurchase agreements; managing escrow accounts, and investment and real estate funds; credit cards; roadside and medical assistance services; and transportation, maintenance and remodeling, and outsourcing services, as well as provides technology services. Bancolombia S.A. was founded in 1875 and is headquartered in Medellín, Colombia.