UBS Group (NYSE:UBS) versus Banco de Sabadell (OTCMKTS:BNDSF) Critical Survey

Banco de Sabadell (OTCMKTS:BNDSF) and UBS Group (NYSE:UBS) are both financial services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

11.8% of Banco de Sabadell shares are owned by institutional investors. 1.0% of UBS Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Banco de Sabadell and UBS Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco de Sabadell	0	1	0	0	2.00
UBS Group	0	3	3	0	2.50

Valuation and Earnings

This table compares Banco de Sabadell and UBS Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco de Sabadell	N/A	N/A	N/A	$0.08	25.07
UBS Group	$65.28 billion	N/A	$27.85 billion	$8.98	2.99

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

Profitability

This table compares Banco de Sabadell and UBS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco de Sabadell	N/A	N/A	N/A
UBS Group	43.70%	7.56%	0.39%

Summary

UBS Group beats Banco de Sabadell on 8 of the 10 factors compared between the two stocks.

About Banco de Sabadell

Banco de Sabadell, S.A. provides banking products and services to personal, business, and private customers in Spain and internationally. The company offers retail banking products, such as current and savings accounts, personal loans, cards, and mortgages. It also provides financial products and services to large and medium enterprises, SMEs, shops and self-employed workers, private individuals, and professionals; and consumer finance, asset management, and bancassurance services. In addition, the company offers corporate banking services, including financing services, transactional banking services, and other complex custom solutions in finance, treasury, and import/export, among others. Further, it provides insurance and pension products. The company was founded in 1881 and is based in Alicante, Spain.

About UBS Group

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.