Critical Analysis: Macro Bank (BMA) and Access National Corporation (ANCX)

Macro Bank (NYSE: BMA) and Access National Corporation (NASDAQ:ANCX) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Dividends

Macro Bank pays an annual dividend of $0.75 per share and has a dividend yield of 0.7%. Access National Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Macro Bank pays out 10.1% of its earnings in the form of a dividend. Access National Corporation pays out 59.4% 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 and Volatility

Macro Bank has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Access National Corporation has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

31.5% of Macro Bank shares are held by institutional investors. Comparatively, 36.9% of Access National Corporation shares are held by institutional investors. 24.3% of Access National Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Macro Bank and Access National Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Macro Bank $1.35 billion 5.07 $487.99 million $7.41 14.03
Access National Corporation $84.66 million 6.16 $20.59 million $1.01 25.32

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Macro Bank and Access National Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macro Bank 1 2 1 0 2.00
Access National Corporation 0 3 2 0 2.40

Macro Bank presently has a consensus price target of $113.70, suggesting a potential upside of 9.39%. Access National Corporation has a consensus price target of $30.40, suggesting a potential upside of 18.89%. Given Access National Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Access National Corporation is more favorable than Macro Bank.

Profitability

This table compares Macro Bank and Access National Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macro Bank 17.98% 27.55% 4.53%
Access National Corporation 13.02% 9.24% 1.04%

Macro Bank Company Profile

Banco Macro SA is an Argnetina-based financial institution (the Bank) that offers traditional bank products and services to companies, including those operating in regional economies, as well as to individuals. In addition, the Bank performs certain transactions through its subsidiaries, including mainly Banco del Tucuman, Macro Bank Ltd, Macro Securities SA, Macro Fiducia SA and Macro Fondos SGFCI SA. It has approximately two categories of customers, such as retail customers, including individuals and entrepreneurs and corporate customers, which include small, medium and large companies and major corporations. In addition, it provides services to over four provincial governments. It provides its corporate customers with traditional banking products and services, such as deposits, lending (including overdraft facilities), check cashing advances and factoring, guaranteed loans and credit lines for financing foreign trade and cash management services.

Access National Corporation Company Profile

Access National Corporation is a bank holding company. The Company operates through its subsidiary, Access National Bank (the Bank). The Bank offers a range of financial services and products, and specializes in providing customized financial services to small and medium sized businesses, professionals and associated individuals. The Company operates through three segments: traditional commercial banking, mortgage banking and wealth management. Its commercial banking segment includes loans, investment securities and deposit services. Its mortgage banking segment includes mortgage loans held for sale, sales of loans in the secondary mortgage market and loan origination. Its wealth management segment includes portfolio asset management. The commercial banking segment provides the mortgage banking segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges interest to the mortgage banking segment.

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