Macro Bank (NYSE:BMA) versus Bank of Nova Scotia (NYSE:BNS) Head-To-Head Comparison

Macro Bank (NYSE:BMA) and Bank of Nova Scotia (NYSE:BNS) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares Macro Bank and Bank of Nova Scotia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Macro Bank	8.32%	10.94%	2.95%
Bank of Nova Scotia	9.74%	11.61%	0.62%

Dividends

Macro Bank pays an annual dividend of $4.39 per share and has a dividend yield of 10.0%. Bank of Nova Scotia pays an annual dividend of $3.23 per share and has a dividend yield of 5.1%. Macro Bank pays out 38.5% of its earnings in the form of a dividend. Bank of Nova Scotia pays out 86.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bank of Nova Scotia has increased its dividend for 14 consecutive years. Macro Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings for Macro Bank and Bank of Nova Scotia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macro Bank	1	3	1	0	2.00
Bank of Nova Scotia	0	5	4	0	2.44

Macro Bank presently has a consensus price target of $62.17, suggesting a potential upside of 42.20%. Bank of Nova Scotia has a consensus price target of $86.00, suggesting a potential upside of 35.67%. Given Macro Bank’s higher probable upside, equities analysts clearly believe Macro Bank is more favorable than Bank of Nova Scotia.

Volatility & Risk

Macro Bank has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Bank of Nova Scotia has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Valuation & Earnings

This table compares Macro Bank and Bank of Nova Scotia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Macro Bank	$4.49 billion	0.62	$358.05 million	$11.41	3.83
Bank of Nova Scotia	$55.90 billion	1.41	$5.70 billion	$3.72	17.04

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

Institutional & Insider Ownership

49.1% of Bank of Nova Scotia shares are held by institutional investors. 18.3% of Macro Bank shares are held by 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.

Summary

Bank of Nova Scotia beats Macro Bank on 10 of the 17 factors compared between the two stocks.

About Macro Bank

Banco Macro S.A. provides various banking products and services to retail and corporate customers in Argentina. It offers various retail banking products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines, and money transfers. The company also provides personal loans, document discounts, residential mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services, including deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services; and trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; and working capital facilities, credit for investment projects, and leasing and foreign trade transactions. Further, the company provides transaction services, such as cash management, collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; information services comprising Datanet and Interpymes services to corporate customers; and Internet and mobile banking services. Additionally, it offers short-term and medium-to-long-term corporate lending products. Banco Macro S.A. was incorporated in 1966 and is headquartered in Buenos Aires, Argentina.

About Bank of Nova Scotia

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets segments. The company offers financial advice and solutions, and banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and retail automotive financing solutions. It also provides business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses. In addition, it provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternatives, and institutional funds. The Bank of Nova Scotia was founded in 1832 and is headquartered in Toronto, Canada.