Op-Ed: Birling Puerto Rico Stock Index beating Dow Jones, S&P 500 and Nasdaq

What is the Birling Capital Puerto Rico Stock Index?

The Birling Capital Puerto Rico Stock Index is a market value-weighted index composed of five (5) companies with headquarters and/or primary domicile in Puerto Rico. All companies are listed on the national NYSE, AMEX, or NASDAQ exchanges. 

Birling Capital Puerto Rico Stock Index has a yield of 39.44%

We have compared the Birling Puerto Rico Stock Index stocks’ performance from Jan. 1 to Aug. 27, 2021, versus the Dow Jones, S&P 500, and the Nasdaq Composite Index, and you will notice that the results are highly favorable for local stocks. Let’s see the results.

The Birling Capital Puerto Rico Stock Index had a solid year in 2020 among the five companies that make up the index. Next, we make a collective and individual comparison of each Birling Capital Puerto Rico Stock Index component versus the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite. The Birling Capital Puerto Rico Stock Index has a yield of 39.44% from Jan. 1 to Aug. 27, 2021, when comparing the following indices results, you will notice why it makes sense to look at Puerto Rico shares again. 

The Birling Capital Puerto Rico Stock Index: Individual returns and prices per share:

Triple S Management (GTS): achieved a yield of 66.14% exceeding the Birling PRSI and the Dow Jones, S&P 500, and Nasdaq, with a price per share at the close of 8/27/21 of $ 35.47. As you all know, GuideWell is acquiring Triple S, and some of the stock increases are a direct result of the offer.  Triple S Management (GTS): reported 2Q21 revenues of $1 billion, up 15.1%, and net income of $23.6 million, down 45.8% from the same period last year.

Key Stats for Triple S:

• Total Assets: $3.2 billion; and,
• Net Capital: $976.7 million.

First Bancorp. (FBP): achieved a return of 41% exceeding the Birling PRSI and the Dow Jones, S&P 500, and Nasdaq, with a price per share at the close of Aug. 27 of $13. First Bank reported 2Q21 net income of $110.6 million and a net profit of $70.6 million, earnings per share of $0.36.

Key Stats for Firstbank:

• Total assets: $19.4 billion;
• Total loans: $11.3 billion;
• Total deposits: $16 billion; and,
• Net capital: $2.2 billion.

Popular Inc. (BPOP): achieved a return of 37.29% exceeding the Birling PRSI and the Dow Jones, S&P 500, and Nasdaq, with a price per share as of Aug. 27 of $77.32. Banco Popular reported a 2Q21 net income of $529.7 million, net income of $218.1 million, and earnings per share of $2.67.

Key Stats for Popular Inc.:

• Total assets: $66.9 billion;
• Total loans: $27.1 billion;
• Total deposits: $58.7 billion; and,
• Net capital: $5.9 billion.

OFG Bancorp (OFG): achieved a yield of 29.40%  exceeding the Birling PRSI and the Dow Jones, S&P 500, and Nasdaq, with a price per share as of Aug. 27 of $23.99. Oriental reported 2Q21 net income of $133.3 million, net income of $40.8 million, and earnings per share of $0.78.

Key Statistics for Oriental

• Total assets $10.2 billion;
• Total loans: $6.4 billion;
• Total deposits: $8.8 billion; and,
• Net capital: $1.1 billion.

Evertec Inc. (EVTC): achieved a yield of 17.96% is below the Birling PRSI, the Dow Jones, S&P 500, and Nasdaq, with a price per share at the close of Aug. 27 of $46.38. Evertec reported second-quarter 2021 revenues of $149.1 million, up 26%, and net earnings of $49.2 million; in addition, Evertec repurchased $24.4 million of its shares during the quarter.

Key Statistics for Evertec:

• Total Assets: $3.207 billion; and,
• Net Capital: $976.8 million

The five Puerto Rico public companies have reported during the second quarter of 2021 collective revenues of $1.92 billion and earnings of $402.3 million.

Please take note that at its worst close on March 18, 2020, the Birling Capital Puerto Rico Stock Index had a return of –52.49%; however, it has had a sustained and spectacular recovery.

Returns of the comparative indices versus the Birling Capital Puerto Rico Stock Index:

• Dow Jones Industrial Average return of 15.8%
• S&P 500 has a yield of 20.06%
• Nasdaq Composite Index return of 17.3%
• Birling Capital Puerto Rico Stock index has a yield of 39.44%, which is 148.98% higher than the Dow Jones, 96.61% higher than the S&P 500, and 126.79% higher than the Nasdaq Composite index.

We suggest that investors re-examine all stocks in the Birling Puerto Rico Stock Index, as they deserve a fresh look to consider them as part of a diversified portfolio.