Reviewing Truist Financial (NYSE:TFC) and Banco Latinoamericano de Comercio Exterior (NYSE:BLX)

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

Profitability

This table compares Banco Latinoamericano de Comercio Exterior and Truist Financial’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%
Truist Financial	19.13%	10.06%	1.09%

Volatility & Risk

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. Comparatively, Truist Financial has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Dividends

Banco Latinoamericano de Comercio Exterior pays an annual dividend of $2.75 per share and has a dividend yield of 5.0%. Truist Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.1%. Banco Latinoamericano de Comercio Exterior pays out 45.4% of its earnings in the form of a dividend. Truist Financial pays out 47.7% 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 raised 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.

Valuation & Earnings

This table compares Banco Latinoamericano de Comercio Exterior and Truist Financial”s 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	2.47	$226.88 million	$6.06	9.14
Truist Financial	$30.44 billion	2.02	$5.31 billion	$4.36	11.57

Truist Financial 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 Truist Financial, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

19.5% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. Comparatively, 71.3% of Truist Financial shares are held by institutional investors. 0.2% of Banco Latinoamericano de Comercio Exterior shares are held by company insiders. Comparatively, 0.2% of Truist Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Banco Latinoamericano de Comercio Exterior and Truist Financial, as provided 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
Truist Financial	2	8	7	0	2.29

Truist Financial has a consensus price target of $55.12, indicating a potential upside of 9.29%. Given Truist Financial’s higher probable upside, analysts clearly believe Truist Financial is more favorable than Banco Latinoamericano de Comercio Exterior.

Summary

Banco Latinoamericano de Comercio Exterior beats Truist Financial on 11 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 Truist Financial

Truist Financial Corporation, a financial services company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; credit card lending; consumer finance; home equity and mortgage lending; other direct retail lending; insurance; investment brokerage; mobile/online banking; payment solutions; point-of-sale lending; retail and small business deposit products; small business lending; and wealth management/private banking services. In addition, it offers asset based lending, investment banking and capital market, institutional trust, insurance premium finance, derivatives, commercial lending, international banking, leasing, merchant, commercial deposit and treasury, floor plan, mortgage warehouse lending, real estate lending, and supply chain financing services. Further, the company provides insurance brokerage, retail and wholesale brokerage, securities underwriting and market making, loan syndication, and investment management and advisory services. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.