Analyzing Carter Bankshares (NASDAQ:CARE) and Banco Latinoamericano de Comercio Exterior (NYSE:BLX)

Carter Bankshares (NASDAQ:CARE) and Banco Latinoamericano de Comercio Exterior (NYSE:BLX) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Carter Bankshares and Banco Latinoamericano de Comercio Exterior, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carter Bankshares	0	4	1	0	2.20
Banco Latinoamericano de Comercio Exterior	0	0	0	1	4.00

Carter Bankshares currently has a consensus target price of $30.75, indicating a potential upside of 1.45%. Given Carter Bankshares’ higher possible upside, equities research analysts plainly believe Carter Bankshares is more favorable than Banco Latinoamericano de Comercio Exterior.

Institutional and Insider Ownership

41.5% of Carter Bankshares shares are owned by institutional investors. Comparatively, 19.5% of Banco Latinoamericano de Comercio Exterior shares are owned by institutional investors. 2.4% of Carter Bankshares shares are owned by insiders. Comparatively, 0.2% of Banco Latinoamericano de Comercio Exterior shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Carter Bankshares has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Banco Latinoamericano de Comercio Exterior has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Profitability

This table compares Carter Bankshares and Banco Latinoamericano de Comercio Exterior’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carter Bankshares	36.79%	7.46%	0.73%
Banco Latinoamericano de Comercio Exterior	27.77%	13.77%	1.75%

Valuation and Earnings

This table compares Carter Bankshares and Banco Latinoamericano de Comercio Exterior”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carter Bankshares	$254.63 million	2.64	$31.00 million	$5.81	5.22
Banco Latinoamericano de Comercio Exterior	$836.85 million	2.44	$226.88 million	$6.06	9.04

Banco Latinoamericano de Comercio Exterior has higher revenue and earnings than Carter Bankshares. Carter Bankshares is trading at a lower price-to-earnings ratio than Banco Latinoamericano de Comercio Exterior, indicating that it is currently the more affordable of the two stocks.

Dividends

Carter Bankshares pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. Banco Latinoamericano de Comercio Exterior pays an annual dividend of $2.75 per share and has a dividend yield of 5.0%. Carter Bankshares pays out 6.9% of its earnings in the form of a dividend. Banco Latinoamericano de Comercio Exterior pays out 45.4% 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. Banco Latinoamericano de Comercio Exterior has increased its dividend for 2 consecutive years. Banco Latinoamericano de Comercio Exterior is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Banco Latinoamericano de Comercio Exterior beats Carter Bankshares on 11 of the 18 factors compared between the two stocks.

About Carter Bankshares

Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services in the United States. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction, acquisition, commercial, and industrial loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll, and social security checks; online banking products, including online and mobile banking, online account opening, bill pay, e-statement, mobile deposit, digital wallet, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.

About Banco Latinoamericano de Comercio Exterior

Banco Latinoamericano de Comercio Exterior, S. A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates in two segments, Commercial and Treasury. It offers bilateral loans; structured loans including syndicated and clubbed, such as acquisition and pre-export financing, A/B loan financing, bridge loans, and liability management; and project financing. The company also provides letter of credit comprising import and export letters of credit, and credit discounting and financing, as well as usance payable at sight; stand-by services; bank guarantees, including first demand and local guarantees; import and export documentary collection; irrevocable reimbursement undertaking; and canal tolls. In addition, it offers liquidity and investment solutions, such as time deposits, DDA accounts, Yankee certificate of deposits, and EMTN private placement services, as well as supply chain finance services. The company primarily serves financial institutions, corporations, and sovereigns and state-owned entities. Banco Latinoamericano de Comercio Exterior, S. A.was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S. A. in June 2009. The company was founded in 1975 and is headquartered in Panama City, the Republic of Panama.