Grupo Aval Acciones y Valores S.A. (AVAL) vs Happen Inc. (HAPN)

Grupo Aval Acciones y Valores S.A. and Happen Inc. are both Banks Regional companies. Grupo Aval Acciones y Valores S.A. and Happen Inc. are of similar size ($1.9B and $1.8B). Happen Inc. trades at the lower P/E: 8.8× against 12.4×. Happen Inc. grew revenue faster over the last twelve months: 11.6% against 1.48%. Happen Inc. has the higher net margin (14.0% vs 5.23%) and the higher return on invested capital (24.5% vs −0.19%). Across the 18 metrics below, Happen Inc. leads on 12 and Grupo Aval Acciones y Valores S.A. on 6.

Valuation

Metric AVAL HAPN Banks Regional median
P/E 12.40 8.84 12.15
P/S 0.69 1.24 2.37
P/B 0.85 1.11 1.21
Price to free cash flow 2.65 n/m 10.80
EV/EBITDA n/m n/m —
EV/Sales 0.58 0.59 2.27
Earnings yield 8.06% 11.31% 8.11%
Free cash flow yield 37.73% (170.51%) 8.98%

Profitability

Metric AVAL HAPN Banks Regional median
Gross margin 43.20% 75.19% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 5.23% 14.03% 18.66%
Free cash flow margin 0.00% (212.17%) 21.18%
Return on equity 0.00% 13.15% 10.64%
Return on assets 0.52% 1.68% 1.13%
Return on invested capital (0.19%) 24.47% 8.33%

Growth

Metric AVAL HAPN Banks Regional median
Revenue growth (TTM) 1.48% 11.62% 6.61%
EPS growth (last fiscal year) 71.43% 157.78% —
Revenue growth, 5-year CAGR (10.60%) 23.29% 12.30%
Net income growth, 5-year CAGR (13.35%) 0.00% 9.71%

Health

Metric AVAL HAPN Banks Regional median
Debt to equity 0.56 0.00 0.22
Current ratio 0.88 0.72 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric AVAL HAPN Banks Regional median
Dividend yield 6.78% — 3.75%
Payout ratio 0.30 0.00 0.27

Size

Metric AVAL HAPN Banks Regional median
Market cap 1.85b 1.77b 921.07m

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