Which Is a Better Investment, FB Financial Corp or Grupo Financiero Galicia S.A. (ADR) Stock? (2024)

Sifting through countless of stocks in the Banks industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in FB Financial Corp or Grupo Financiero Galicia S.A. (ADR) because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how FB Financial Corp and Grupo Financiero Galicia S.A. (ADR) compare based on key financial metrics to determine which better meets your investment needs.

FB Financial Corporation is a financial holding company. The Company operates through its wholly owned banking subsidiary, FirstBank with approximately 81 full-service bank branches across Tennessee, Kentucky, Alabama and North Georgia, and mortgage offices across the Southeast. It operates through two segments: Banking and Mortgage. The Banking segment provides a full range of deposit and lending services to corporate, commercial and consumer customers. The Company also originates conforming residential mortgage loans through the Mortgage segment which engages in servicing and sale of mortgage loans through the secondary markets. It also provides other limited servicing banking, automated teller machine (ATM) and mortgage loan production locations serving metropolitan and community markets across its footprint. It also operates in approximately 17 community markets. The Company also provides mortgage banking services utilizing its bank branch network and mortgage banking offices.

Grupo Financiero Galicia SA is an Argentina-based financial services holding company. The Company does not have operations of its own and conduct its business through its subsidiaries. Banco Galicia is the Company's main subsidiary and one of Argentina’s service banks. The Company's goal is to consolidate its position as one of Argentina’s comprehensive financial services providers while continuing to strengthen Banco Galicia’s position as one of Argentina’s banks. The Company seeks to broaden and complement the operations and businesses of Banco Galicia, through holdings in companies and undertakings whose objectives are related to and/or can produce synergies with financial activities. The Company's non-banking subsidiaries operate in financial and related activities.

As of September 12, 2024, FB Financial Corp had a $2.1 billion market capitalization, compared to the Banks median of $376.7 million. FB Financial Corp’s stock is NA in 2024, NA in the previous five trading days and up 53.25% in the past year.

Currently, FB Financial Corp’s price-earnings ratio is 18.2. FB Financial Corp’s trailing 12-month revenue is $702.3 million with a 16.6% net profit margin. Year-over-year quarterly sales growth most recently was 4.2%. Analysts expect adjusted earnings to reach $3.263 per share for the current fiscal year. FB Financial Corp currently has a 1.5% dividend yield.

Currently, Grupo Financiero Galicia S.A. (ADR)’s price-earnings ratio is 6.5. Grupo Financiero Galicia S.A. (ADR)’s trailing 12-month revenue is $8.2 billion with a 11.9% net profit margin. Year-over-year quarterly sales growth most recently was 35.8%. Analysts expect adjusted earnings to reach $10.420 per share for the current fiscal year. Grupo Financiero Galicia S.A. (ADR) does not currently pay a dividend.

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at FB Financial Corp and Grupo Financiero Galicia S.A. (ADR)’s stock grades to see how they measure up against one another.

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The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

FB Financial Corp has a Growth Score of 75, which is Strong. Grupo Financiero Galicia S.A. (ADR) has a Growth Score of 68, which is Strong.

Looking at the Growth Grade breakdown above, both FB Financial Corp and Grupo Financiero Galicia S.A. (ADR) have a grade of B. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

FB Financial Corp has a Quality Score of 73, which is Strong. Grupo Financiero Galicia S.A. (ADR) has a Quality Score of 51, which is Average.

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

FB Financial Corp has a Earnings Estimate Score of 63, which is Positive. Grupo Financiero Galicia S.A. (ADR) has a Earnings Estimate Score of 74, which is Positive.

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether FB Financial Corp and Grupo Financiero Galicia S.A. (ADR) pass any of our 60+ stock screens that have outperformed the market since their creation.

Overall, FB Financial Corp stock has a Growth Score of 75, Estimate Revisions Score of 63 and Quality Score of 73.

Grupo Financiero Galicia S.A. (ADR) stock has a Growth Score of 68, Estimate Revisions Score of 74 and Quality Score of 51.

Comparing FB Financial Corp and Grupo Financiero Galicia S.A. (ADR)’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.