Critical Contrast: First Interstate BancSystem (NASDAQ:FIBK) & Banco Latinoamericano de Comercio Exterior (NYSE:BLX)

Banco Latinoamericano de Comercio Exterior (NYSE:BLX) and First Interstate BancSystem (NASDAQ:FIBK) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Dividends

Banco Latinoamericano de Comercio Exterior pays an annual dividend of $2.75 per share and has a dividend yield of 5.0%. First Interstate BancSystem pays an annual dividend of $1.88 per share and has a dividend yield of 5.3%. Banco Latinoamericano de Comercio Exterior pays out 45.4% of its earnings in the form of a dividend. First Interstate BancSystem pays out 57.8% 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.

Institutional and Insider Ownership

19.5% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. Comparatively, 88.7% of First Interstate BancSystem shares are held by institutional investors. 0.2% of Banco Latinoamericano de Comercio Exterior shares are held by insiders. Comparatively, 8.0% of First Interstate BancSystem shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Banco Latinoamericano de Comercio Exterior and First Interstate BancSystem”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Latinoamericano de Comercio Exterior	$836.85 million	2.45	$226.88 million	$6.06	9.08
First Interstate BancSystem	$1.41 billion	2.41	$302.10 million	$3.25	11.00

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

Volatility and Risk

Banco Latinoamericano de Comercio Exterior has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, First Interstate BancSystem has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares Banco Latinoamericano de Comercio Exterior and First Interstate BancSystem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Latinoamericano de Comercio Exterior	27.77%	13.77%	1.75%
First Interstate BancSystem	23.63%	9.55%	1.22%

Analyst Ratings

This is a summary of current ratings for Banco Latinoamericano de Comercio Exterior and First Interstate BancSystem, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Latinoamericano de Comercio Exterior	0	0	0	1	4.00
First Interstate BancSystem	3	4	2	0	1.89

First Interstate BancSystem has a consensus price target of $36.83, indicating a potential upside of 3.06%. Given First Interstate BancSystem’s higher probable upside, analysts clearly believe First Interstate BancSystem is more favorable than Banco Latinoamericano de Comercio Exterior.

Summary

Banco Latinoamericano de Comercio Exterior beats First Interstate BancSystem on 10 of the 18 factors compared between the two stocks.

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.

About First Interstate BancSystem

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, other operational, and specialized staff support services, as well as online and mobile banking services. The company serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, governmental services, healthcare, hospitality, housing, professional services, real estate development, retail, technology, tourism, and wholesale trade. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana.