Banco BBVA Argentina (NYSE:BBAR) and DNB Bank ASA (OTCMKTS:DNBBY) Financial Analysis

Banco BBVA Argentina (NYSE:BBAR) and DNB Bank ASA (OTCMKTS:DNBBY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Banco BBVA Argentina and DNB Bank ASA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco BBVA Argentina	0	0	0	0	N/A
DNB Bank ASA	0	0	0	0	N/A

Earnings & Valuation

This table compares Banco BBVA Argentina and DNB Bank ASA’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco BBVA Argentina	$1,917.93 billion	0.00	$596.06 million	$1.76	5.03
DNB Bank ASA	$17.13 billion	N/A	$3.62 billion	$2.35	8.03

DNB Bank ASA has lower revenue, but higher earnings than Banco BBVA Argentina. Banco BBVA Argentina is trading at a lower price-to-earnings ratio than DNB Bank ASA, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Banco BBVA Argentina has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, DNB Bank ASA has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Profitability

This table compares Banco BBVA Argentina and DNB Bank ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco BBVA Argentina	4.55%	11.32%	2.33%
DNB Bank ASA	21.11%	14.54%	1.06%

Dividends

Banco BBVA Argentina pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. DNB Bank ASA pays an annual dividend of $0.97 per share and has a dividend yield of 5.1%. Banco BBVA Argentina pays out 4.5% of its earnings in the form of a dividend. DNB Bank ASA pays out 41.3% 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.

Summary

DNB Bank ASA beats Banco BBVA Argentina on 6 of the 10 factors compared between the two stocks.

About Banco BBVA Argentina

Banco BBVA Argentina S.A. provides various banking products and services to individuals and companies in Argentina. It provides retail banking products and services, such as checking and savings accounts, time deposits, credit cards, consumer and pledge loans, mortgages, insurance, and investment products to individuals; and small and medium-sized companies products and services, including financing products, factoring, checking accounts, time deposits, transactional and payroll services, insurance, and investment products to private-sector companies. The company also provides corporate and investment banking products and services, such as global transaction services; global markets solutions comprising risk management and securities brokerage; long-term financing products, including project finance and syndicated loans; and corporate finance services comprising mergers and acquisitions, and capital markets advisory services to corporations and multinational companies operating in Argentina. The company was formerly known as BBVA Banco Francés S.A. and changed its name to Banco BBVA Argentina S.A. in July 2019. Banco BBVA Argentina S.A. was incorporated in 1886 and is based in Buenos Aires, Argentina.

About DNB Bank ASA

DNB Bank ASA provides financial services for individual and business customers in Norway and internationally. The company offers savings, current, and pension accounts; fixed rate and security deposits; home and cabin mortgages, car and consumer loans, business loans, and refinancing; car, house, home contents, travel, personal, and non-life insurance product; payment services; and online and mobile banking services, as well as cards. It also provides overdraft facilities; leasing services; factoring, supply chain, and receivable purchase financing services; bank guarantee, secure trading, documentary collection, and letter of credit services; investment banking services, such as mergers and acquisition, equity and debt capital market, shares and securities, mutual funds and trading, and bonds and commodities; and private financing, as well as equity trading, foreign exchange, interest rates, and risk advisory services. In addition, the company offers treasury management, working capital, trade finance, auto lease and equipment financing, and corporate finance services, as well as act as an estate agents. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.