Seeking Alpha: Santander Looks Pricey Relative To Its Capital And Growth Prospects

The economy in Spain has been looking a little better and that has led Spanish banking shares to do quite a lot better, with Bankia up close to 120%, CaixaBank up about 90% and the big boys BBVA (BBVA) and Santander (SAN) up around 60%. Credit recovery can be a powerful factor in bank stock appreciation and incoming bad credits in Spain are getting better for Santander. On the other hand, Santander Mexico (BSMX) hasn't been doing as well as I'd hoped, Santander Brasil (BSBR) is losing share, and the company's credit position is still quite weak relative to other large banks. These shares already seem to reflect a lot of optimism about improving interest spreads and loan growth and I don't see much value at these levels.

Read more here:
Santander Looks Pricey Relative To Its Capital And Growth Prospects

Seeking Alpha: There's More Than Scarcity Value To Santander Mexico

Retail investors don't have a lot of options when it comes to trying to benefit from the growth in the Mexican banking industry. Of the five largest banks in Mexico, only Grupo Financiero Santander Mexico (BSMX), or Santander Mexico for short, trades independently in the U.S. It isn't just scarcity that makes Santander Mexico stand out, though, as the company is also one of the leaders in consumer and commercial lending in Mexico, as well as one of the best-run banks in the market.

In addition to quality, Santander Mexico shares offer pretty solid value at today's price. While the stock is near the high end of its P/E ratio, it's not unreasonable relative to growth. Likewise, the company's return on tangible assets suggests that the stock should sport a much higher price/tangible book ratio, while a return on equity model indicates worthwhile upside in the shares today as well.

Follow this link to read the entire article:
There's More Than Scarcity Value To Santander Mexico