Critical Review: Grupo Supervielle (NYSE:SUPV) versus Hanover Bancorp (NASDAQ:HNVR)

Grupo Supervielle (NYSE:SUPV) and Hanover Bancorp (NASDAQ:HNVR) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Grupo Supervielle and Hanover Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Supervielle	1	4	2	0	2.14
Hanover Bancorp	0	2	2	0	2.50

Grupo Supervielle presently has a consensus target price of $13.17, indicating a potential upside of 86.50%. Hanover Bancorp has a consensus target price of $28.50, indicating a potential upside of 13.14%. Given Grupo Supervielle’s higher possible upside, equities analysts clearly believe Grupo Supervielle is more favorable than Hanover Bancorp.

Volatility and Risk

Grupo Supervielle has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, Hanover Bancorp has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.

Profitability

This table compares Grupo Supervielle and Hanover Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Supervielle	-3.60%	-2.67%	-0.35%
Hanover Bancorp	6.71%	6.00%	0.50%

Earnings and Valuation

This table compares Grupo Supervielle and Hanover Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Supervielle	$1.65 billion	0.37	-$38.87 million	($0.63)	-11.21
Hanover Bancorp	$143.32 million	1.24	$7.49 million	$1.27	19.83

Hanover Bancorp has lower revenue, but higher earnings than Grupo Supervielle. Grupo Supervielle is trading at a lower price-to-earnings ratio than Hanover Bancorp, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

15.0% of Hanover Bancorp shares are held by institutional investors. 24.4% of Hanover Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Hanover Bancorp beats Grupo Supervielle on 10 of the 13 factors compared between the two stocks.

About Grupo Supervielle

Grupo Supervielle S.A., a financial services holding company, provides various banking products and services in Argentina. The company operates through Personal & Business Banking, Corporate Banking, Bank Treasury, Consumer Finance, Insurance, and Asset Management and Other Services segments. It offers savings accounts, time and demand deposits, and checking accounts; various loan products, including personal, consumer, mortgage, unsecured, and car loans; overdrafts; loans with special facilities for project and working capital financing; and leasing, bank guarantees for tenants, salary advances, domestic and international factoring, international guarantees and letters of credit, payroll payment plans, credit and debit cards, and senior citizens benefit payment services, as well as financial services and investments, such as mutual funds and guarantees. The company also provides foreign trade and cash management; advisory services; treasury services; insurance products comprising life, home, personal accidents, technology, ATMs, protected bag, and protected content; and asset management and other services, as well as operates as a digital online broker. It operates through a network of bank branches, ATMs, and self-service terminals, as well as ATMs with biometric identification. The company was formerly known as Inversiones y Participaciones S.A. and changed its name to Grupo Supervielle S.A. in November 2008. Grupo Supervielle S.A. was founded in 1887 and is based in Buenos Aires, Argentina.

About Hanover Bancorp

Hanover Bancorp, Inc., a bank holding company for Hanover Community Bank, provides personal and business lending and deposit services to businesses, municipalities, and individuals in the New York metro area. The company offers checking, credit cards, debit cards, money market, savings, government and municipal banking, and professional services, as well as time deposits, including certificate of deposit and individual retirement accounts. It also provides business loans, commercial real estate financing, small business administration, lending directory services, and residential mortgage. In addition, the company offers cash management, online and mobile banking, merchant services, and digital solutions. Its banking offices are located in Nassau, Suffolk, Queens, Kings, New York Counties, New York, Monmouth County, Freehold, and New Jersey. The company was founded in 2008 and is headquartered in Mineola, New York.