Reviewing Banco Latinoamericano de Comercio Exterior (NYSE:BLX) and SHF (NASDAQ:SHFS)

SHF (NASDAQ:SHFS) and Banco Latinoamericano de Comercio Exterior (NYSE:BLX) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares SHF and Banco Latinoamericano de Comercio Exterior’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SHF	-61.26%	-69.14%	-30.95%
Banco Latinoamericano de Comercio Exterior	27.91%	13.96%	1.68%

Analyst Recommendations

This is a summary of current ratings and recommmendations for SHF and Banco Latinoamericano de Comercio Exterior, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SHF	1	0	0	0	1.00
Banco Latinoamericano de Comercio Exterior	0	0	1	0	3.00

Institutional and Insider Ownership

29.2% of SHF shares are held by institutional investors. Comparatively, 19.5% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. 5.8% of SHF shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares SHF and Banco Latinoamericano de Comercio Exterior”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SHF	$10.65 million	0.00	-$2.16 million	($13.56)	-0.00
Banco Latinoamericano de Comercio Exterior	$836.85 million	2.26	$226.88 million	$6.06	8.37

Banco Latinoamericano de Comercio Exterior has higher revenue and earnings than SHF. SHF is trading at a lower price-to-earnings ratio than Banco Latinoamericano de Comercio Exterior, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

SHF has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Banco Latinoamericano de Comercio Exterior has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Summary

Banco Latinoamericano de Comercio Exterior beats SHF on 10 of the 13 factors compared between the two stocks.

About SHF

SHF Holdings, Inc., doing business as Safe Harbor Financial, provides financial services to cannabis-related businesses in the United States. The company works with financial institution partners to offer compliant banking and financial solutions to businesses operating in the state-licensed cannabis industry. Its services include deposit accounts, cash management, payment processing, lending, and other treasury and financial services designed to address the specialized regulatory and operational requirements of cannabis businesses.

About Banco Latinoamericano de Comercio Exterior

Banco Latinoamericano de Comercio Exterior, commonly known as Bladex, is a specialized bank that provides financing and other financial services to support foreign trade and economic activity in Latin America and the Caribbean. Established in 1975 by regional governments and central banks, it began operations in 1979 and is headquartered in Panama City. The bank serves financial institutions, corporations and public-sector entities across the region. Its offerings include trade finance, commercial loans, letters of credit, guarantees and financing for regional trade transactions.