Banco Santander (NYSE:SAN) & Bank Hapoalim (OTCMKTS:BKHYY) Financial Comparison

Bank Hapoalim (OTCMKTS:BKHYY) and Banco Santander (NYSE:SAN) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Dividends

Bank Hapoalim pays an annual dividend of $3.27 per share and has a dividend yield of 2.5%. Banco Santander pays an annual dividend of $0.21 per share and has a dividend yield of 1.7%. Bank Hapoalim pays out 30.3% of its earnings in the form of a dividend. Banco Santander pays out 17.4% 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.

Risk & Volatility

Bank Hapoalim has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Banco Santander has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Bank Hapoalim and Banco Santander’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank Hapoalim	22.10%	14.89%	1.24%
Banco Santander	26.92%	12.23%	0.74%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Bank Hapoalim and Banco Santander, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank Hapoalim	0	2	0	0	2.00
Banco Santander	1	3	7	0	2.55

Earnings and Valuation

This table compares Bank Hapoalim and Banco Santander”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank Hapoalim	$12.56 billion	2.70	$2.84 billion	$10.79	12.02
Banco Santander	$66.36 billion	2.75	$15.95 billion	$1.21	10.27

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

Institutional & Insider Ownership

9.2% of Banco Santander shares are held by institutional investors. 9.5% of Banco Santander shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Banco Santander beats Bank Hapoalim on 9 of the 15 factors compared between the two stocks.

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 Banco Santander

Banco Santander, S.A. provides various financial services worldwide. The company operates through Retail Banking, Santander Corporate & Investment Banking, Wealth Management & Insurance, and PagoNxt segments. It offers demand and time deposits, mutual funds, and current and savings accounts; mortgages, consumer finance, loans, and various financing solutions; and project finance, debt capital markets, global transaction banking, and corporate finance services. The company also provides asset management and private banking services; and insurance products. In addition, it offers corporate and investment banking services; and digital payment solutions. Further, it offers online banking and financial services to retail, business, institutional, corporate, private banking and university customers and clients. The company was formerly known as Banco Santander Central Hispano SA and changed its name to Banco Santander, S.A. in February 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.