Comparing Raiffeisen Bank International (OTCMKTS:RAIFY) & Banco Santander (NYSE:SAN)

Raiffeisen Bank International (OTCMKTS:RAIFY) and Banco Santander (NYSE:SAN) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Volatility and Risk

Raiffeisen Bank International has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Banco Santander has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Institutional and Insider Ownership

9.2% of Banco Santander shares are held by institutional investors. 9.5% of Banco Santander shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Raiffeisen Bank International and Banco Santander’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raiffeisen Bank International	-0.56%	2.89%	0.30%
Banco Santander	17.90%	11.92%	0.71%

Earnings and Valuation

This table compares Raiffeisen Bank International and Banco Santander”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Raiffeisen Bank International	$15.33 billion	0.77	$1.25 billion	$0.71	12.70
Banco Santander	$63.85 billion	2.41	$13.61 billion	$0.94	11.01

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

Dividends

Raiffeisen Bank International pays an annual dividend of $0.18 per share and has a dividend yield of 2.0%. Banco Santander pays an annual dividend of $0.18 per share and has a dividend yield of 1.7%. Raiffeisen Bank International pays out 25.4% of its earnings in the form of a dividend. Banco Santander pays out 19.1% 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.

Analyst Recommendations

This is a summary of current recommendations for Raiffeisen Bank International and Banco Santander, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raiffeisen Bank International	0	1	0	0	2.00
Banco Santander	1	1	3	1	2.67

Summary

Banco Santander beats Raiffeisen Bank International on 13 of the 16 factors compared between the two stocks.

About Raiffeisen Bank International

Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.

About Banco Santander

Banco Santander, S.A. provides various financial services worldwide. The company operates through Retail Banking, Santander Corporate & Investment Banking, Wealth Management & Insurance, and PagoNxt segments. It offers demand and time deposits, mutual funds, and current and savings accounts; mortgages, consumer finance, loans, and various financing solutions; and project finance, debt capital markets, global transaction banking, and corporate finance services. The company also provides asset management and private banking services; and insurance products. In addition, it offers corporate and investment banking services; and digital payment solutions. Further, it offers online banking and financial services to retail, business, institutional, corporate, private banking and university customers and clients. The company was formerly known as Banco Santander Central Hispano SA and changed its name to Banco Santander, S.A. in February 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.