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

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

Insider & Institutional Ownership

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

Analyst Ratings

This is a summary of recent recommendations for UBE and Grupo Aval Acciones y Valores, as provided by MarketBeat.

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

Grupo Aval Acciones y Valores has a consensus target price of $5.50, suggesting a potential upside of 4.96%. Given Grupo Aval Acciones y Valores’ stronger consensus rating and higher probable upside, analysts clearly believe Grupo Aval Acciones y Valores is more favorable than UBE.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UBE N/A N/A N/A $5.67 2.70
Grupo Aval Acciones y Valores $6.76 billion 0.92 $344.37 million $0.40 13.10

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.

Profitability

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

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

Dividends

UBE pays an annual dividend of $3.98 per share and has a dividend yield of 26.1%. Grupo Aval Acciones y Valores pays an annual dividend of $0.14 per share and has a dividend yield of 2.7%. UBE pays out 70.3% of its earnings in the form of a dividend. Grupo Aval Acciones y Valores pays out 35.0% 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.

Summary

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

About UBE

(Get Free Report)

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.

About Grupo Aval Acciones y Valores

(Get Free Report)

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.

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