Grupo Financiero Galicia (GGAL) vs. Umpqua Holdings Corporation (UMPQ) Financial Analysis
Grupo Financiero Galicia (NASDAQ: GGAL) and Umpqua Holdings Corporation (NASDAQ:UMPQ) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Grupo Financiero Galicia pays an annual dividend of $0.11 per share and has a dividend yield of 0.2%. Umpqua Holdings Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 3.4%. Umpqua Holdings Corporation pays out 67.9% of its earnings in the form of a dividend.
This table compares Grupo Financiero Galicia and Umpqua Holdings Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grupo Financiero Galicia||N/A||N/A||N/A|
|Umpqua Holdings Corporation||19.04%||5.79%||0.91%|
Institutional & Insider Ownership
27.7% of Grupo Financiero Galicia shares are held by institutional investors. Comparatively, 87.8% of Umpqua Holdings Corporation shares are held by institutional investors. 0.5% of Umpqua Holdings Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Grupo Financiero Galicia and Umpqua Holdings Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grupo Financiero Galicia||1||1||0||0||1.50|
|Umpqua Holdings Corporation||1||5||2||0||2.13|
Umpqua Holdings Corporation has a consensus price target of $19.94, suggesting a potential downside of 4.61%. Given Umpqua Holdings Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Umpqua Holdings Corporation is more favorable than Grupo Financiero Galicia.
Risk and Volatility
Grupo Financiero Galicia has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Umpqua Holdings Corporation has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.
Earnings and Valuation
This table compares Grupo Financiero Galicia and Umpqua Holdings Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Grupo Financiero Galicia||$2.49 billion||2.98||$407.41 million||N/A||N/A|
|Umpqua Holdings Corporation||$1.21 billion||3.80||$232.94 million||$1.06||19.72|
Grupo Financiero Galicia has higher revenue and earnings than Umpqua Holdings Corporation.
Umpqua Holdings Corporation beats Grupo Financiero Galicia on 11 of the 15 factors compared between the two stocks.
About Grupo Financiero Galicia
Grupo Financiero Galicia S.A. (Grupo Financiero Galicia) is a financial services holding company. The Company’s segments include Banking, Regional Credit Cards, CFA, Insurance and Other Grupo Galicia Businesses. Banco de Galicia y Buenos Aires S.A. (Banco Galicia) is a subsidiary of the Company. Its banking business segment represents Banco Galicia consolidated line by line with Banco Galicia Uruguay S.A. (Galicia Uruguay). It operates the regional credit cards segment through Tarjetas Regionales S.A. and its subsidiaries. Its CFA business segment extends unsecured personal loans to low and middle-income segments of the Argentine population. The Company operates the insurance segment through Sudamericana Holding S.A. and its subsidiaries. Its Other Grupo Galicia Businesses segment includes the results of Galicia Warrants S.A., Galicia Administradora de Fondos S.A. Sociedad Gerente de Fondos Comunes de Inversion and Net Investment S.A.
About Umpqua Holdings Corporation
Umpqua Holdings Corporation is a bank holding company. The Company’s principal operating subsidiaries include Umpqua Bank (the Bank) and Umpqua Investments, Inc. (Umpqua Investments). It operates through two segments: Community Banking and Home Lending. The Community Banking segment’s principal business focus is the offering of loan and deposit products to business and retail customers in its primary market areas. As of December 31, 2016, the Community Banking segment operated 346 locations throughout Oregon, California, Washington, Idaho and Nevada. The Home Lending segment originates, sells and services residential mortgage loans. The Company offers a range of traditional and digital financial products. Its products and services include Deposit Products, Private Bank, Broker Dealer and Investment Advisory Services, Commercial Loans and Leases and Commercial Real Estate Loans, and Consumer Loans.
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