Comparing UBE (OTCMKTS:UBEOF) & Grupo Aval Acciones y Valores (NYSE:AVAL)

Grupo Aval Acciones y Valores (NYSE:AVAL) and UBE (OTCMKTS:UBEOF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Profitability

This table compares Grupo Aval Acciones y Valores and UBE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Aval Acciones y Valores	5.08%	6.06%	0.60%
UBE	N/A	N/A	N/A

Valuation & Earnings

This table compares Grupo Aval Acciones y Valores and UBE”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Aval Acciones y Valores	$18,501.18 billion	0.00	$344.37 million	$0.40	13.35
UBE	N/A	N/A	N/A	$5.67	2.70

Grupo Aval Acciones y Valores has higher revenue and earnings than UBE. UBE is trading at a lower price-to-earnings ratio than Grupo Aval Acciones y Valores, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Grupo Aval Acciones y Valores and UBE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Aval Acciones y Valores	0	3	0	0	2.00
UBE	0	0	0	0	0.00

Grupo Aval Acciones y Valores presently has a consensus price target of $5.50, indicating a potential upside of 3.00%. Given Grupo Aval Acciones y Valores’ stronger consensus rating and higher probable upside, research analysts plainly believe Grupo Aval Acciones y Valores is more favorable than UBE.

Dividends

Grupo Aval Acciones y Valores pays an annual dividend of $0.13 per share and has a dividend yield of 2.4%. UBE pays an annual dividend of $3.98 per share and has a dividend yield of 26.1%. Grupo Aval Acciones y Valores pays out 32.5% of its earnings in the form of a dividend. UBE pays out 70.3% 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.

Institutional & Insider Ownership

0.2% of Grupo Aval Acciones y Valores shares are owned by institutional investors. Comparatively, 16.0% of UBE shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Grupo Aval Acciones y Valores beats UBE on 8 of the 11 factors compared between the two stocks.

About Grupo Aval Acciones y Valores

Grupo Aval Acciones y Valores S.A. provides a range of financial services and products to public and private sector customers in Colombia and Central America. It offers traditional deposit services and products, including checking accounts, savings accounts, time deposits, and other deposits. The company also provides commercial loans comprising general purpose loans, working capital loans, leases, loans funded by development banks, corporate credit cards, and overdraft loans; consumer loans, such as payroll loans, personal loans, automobile and other vehicle loans, credit cards, overdrafts, leases, and general purpose loans; and microcredit and mortgage loans. In addition, the company offers pension and severance fund management services; investment banking, including services relating to capital markets, mergers and acquisitions, and project finance transactions; mobile and online banking services; and bancassurance, insurance, trust, bonded warehousing and brokerage transactions, real estate escrow services, merchandise and document storage and deposit, customs agency, cargo management, surety bond and merchandise distribution services, and payment and collection services. Further, it is involved in equity investments in various sectors, including infrastructure, energy and gas, agribusiness, and hospitality; and treasury operations. The company was incorporated in 1994 and is headquartered in Bogotá, Colombia. Grupo Aval Acciones y Valores S.A.

About UBE

UBE Corporation, together with its subsidiaries, engages in the chemicals, construction materials, and machinery businesses in Japan, North America, Europe, Africa, the Middle East, Thailand, India, Latin America, and internationally. It offers synthetic rubber, engineering plastics, caprolactam, industrial chemicals, liquefied gas, polyethylene, ammonium sulfate, polyimide, battery materials, separation membranes, fine chemicals, ceramics, high purity chemicals, semiconductor gas products, and products for polyurethane resins. The company also provides contract manufacturing services for APIs and intermediates; aromatic SF5 compounds; FLUOLEAD, a novel nucleophilic fluorinating agent; and drug discovery and pipeline services. In addition, it offers cement products, ready mixed concrete, soil stabilizing cement, building materials, limestone, calcia and magnesia, specialty inorganic materials, and resource recycling, as well as sells coal. Further, the company is involved in the supply of electric power. Additionally, it provides die-casting and injection molding machines, and extrusion presses; and UBE vertical mills, kilins, furnaces, dryers, water screening equipment, storage and transportation systems, bridges and steel structures, and steel billets and casting. The company also manufactures and sells nylon, caprolactam, ammonium sulfate, plastic films, polypropylene molded products, fibers, fiber-reinforced plastics, and cast iron and steel products. The company was formerly known as Ube Industries, Ltd. UBE Corporation was founded in 1897 and is headquartered in Tokyo, Japan.