Banco Latinoamericano de Comercio Exterior (NYSE: BLX) and Federal Agricultural Mortgage (NYSE:AGM.A) are both small-cap financials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Profitability

This table compares Banco Latinoamericano de Comercio Exterior and Federal Agricultural Mortgage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Latinoamericano de Comercio Exterior 29.97% 7.32% 1.11%
Federal Agricultural Mortgage 21.05% 14.97% 0.50%

Insider and Institutional Ownership

16.3% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Banco Latinoamericano de Comercio Exterior has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Federal Agricultural Mortgage has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Banco Latinoamericano de Comercio Exterior and Federal Agricultural Mortgage, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Latinoamericano de Comercio Exterior 1 2 0 0 1.67
Federal Agricultural Mortgage 0 0 0 0 N/A

Banco Latinoamericano de Comercio Exterior currently has a consensus price target of $27.50, indicating a potential downside of 6.34%. Given Banco Latinoamericano de Comercio Exterior’s higher probable upside, research analysts clearly believe Banco Latinoamericano de Comercio Exterior is more favorable than Federal Agricultural Mortgage.

Dividends

Banco Latinoamericano de Comercio Exterior pays an annual dividend of $1.54 per share and has a dividend yield of 5.2%. Federal Agricultural Mortgage does not pay a dividend. Banco Latinoamericano de Comercio Exterior pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Banco Latinoamericano de Comercio Exterior and Federal Agricultural Mortgage’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Latinoamericano de Comercio Exterior $258.66 million 4.47 $87.04 million $1.90 15.45
Federal Agricultural Mortgage N/A N/A N/A $7.43 9.42

Banco Latinoamericano de Comercio Exterior has higher revenue and earnings than Federal Agricultural Mortgage. Federal Agricultural Mortgage is trading at a lower price-to-earnings ratio than Banco Latinoamericano de Comercio Exterior, indicating that it is currently the more affordable of the two stocks.

Summary

Banco Latinoamericano de Comercio Exterior beats Federal Agricultural Mortgage on 7 of the 10 factors compared between the two stocks.

Banco Latinoamericano de Comercio Exterior Company Profile

Banco Latinoamericano de Comercio Exterior, S.A. (the Bank) is a specialized multinational bank. The Bank is established to support the financing of trade and economic integration in Latin America and the Caribbean. The Company operates in two segments: Commercial and Treasury. The Bank’s Commercial segment incorporates all of the Bank’s financial intermediation and fees generated by the commercial portfolio activities, such as origination of bilateral and syndicated credits, short- and medium-term loans, acceptances and contingent credits. The Bank’s Treasury segment incorporates deposits in banks and all of the Bank’s trading assets, securities available-for-sale and held-to-maturity, and the balance of the investment funds. The Bank serves a range of sectors, including oil and gas, agribusiness, food processing and manufacturing. Its products and services are categorized into three main areas: Financial Intermediation Business, Structuring and Syndications Business and Treasury.

Federal Agricultural Mortgage Company Profile

Federal Agricultural Mortgage Corporation (Farmer Mac) provides a secondary market for a range of loans made to borrowers in rural America. The Company’s segments include Farm & Ranch, USDA Guarantees, Rural Utilities, Institutional Credit and Corporate. Its secondary market activities are purchasing eligible loans directly from lenders; providing advances against eligible loans by purchasing obligations secured by those loans; securitizing assets and guaranteeing the payment of principal and interest on the resulting securities that represent interests in, or obligations secured by, pools of eligible loans; and issuing long-term standby purchase commitments (LTSPCs) for eligible loans. The loans eligible for the secondary market provided by Farmer Mac include mortgage loans secured by first liens on agricultural real estate, including part-time farms and rural housing (comprising the assets eligible for the Farm & Ranch line of business).

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