Banco Santander (NYSE:SAN – Get Free Report) and Finward Bancorp (NASDAQ:FNWD – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Volatility & Risk
Banco Santander has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Finward Bancorp has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500.
Valuation & Earnings
This table compares Banco Santander and Finward Bancorp”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banco Santander | $66.36 billion | 3.30 | $15.95 billion | $1.23 | 12.11 |
| Finward Bancorp | $101.06 million | 1.88 | $8.09 million | $2.27 | 19.34 |
Banco Santander has higher revenue and earnings than Finward Bancorp. Banco Santander is trading at a lower price-to-earnings ratio than Finward Bancorp, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Banco Santander and Finward Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banco Santander | 26.94% | 12.43% | 0.75% |
| Finward Bancorp | 9.65% | 5.68% | 0.48% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Banco Santander and Finward Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banco Santander | 1 | 3 | 6 | 0 | 2.50 |
| Finward Bancorp | 0 | 1 | 2 | 0 | 2.67 |
Finward Bancorp has a consensus price target of $41.00, suggesting a potential downside of 6.61%. Given Finward Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Finward Bancorp is more favorable than Banco Santander.
Dividends
Banco Santander pays an annual dividend of $0.21 per share and has a dividend yield of 1.4%. Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.1%. Banco Santander pays out 17.1% of its earnings in the form of a dividend. Finward Bancorp pays out 21.1% 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. Banco Santander is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
9.2% of Banco Santander shares are held by institutional investors. Comparatively, 26.6% of Finward Bancorp shares are held by institutional investors. 9.5% of Banco Santander shares are held by insiders. Comparatively, 13.1% of Finward Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Banco Santander beats Finward Bancorp on 10 of the 16 factors compared between the two stocks.
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.
About Finward Bancorp
Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company’s deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, custodial services, guardianships, IRA accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.
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