Banco Santander-Chile (NYSE:BSAC) and Grupo Supervielle (NYSE:SUPV) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Risk and Volatility

Banco Santander-Chile has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Grupo Supervielle has a beta of -0.46, meaning that its share price is 146% less volatile than the S&P 500.

Profitability

This table compares Banco Santander-Chile and Grupo Supervielle’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander-Chile 22.48% 18.20% 1.54%
Grupo Supervielle 9.93% 15.86% 2.37%

Dividends

Banco Santander-Chile pays an annual dividend of $1.12 per share and has a dividend yield of 3.7%. Grupo Supervielle pays an annual dividend of $0.11 per share and has a dividend yield of 1.3%. Banco Santander-Chile pays out 57.7% of its earnings in the form of a dividend. Grupo Supervielle pays out 5.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Banco Santander-Chile and Grupo Supervielle, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander-Chile 1 1 1 0 2.00
Grupo Supervielle 2 2 0 0 1.50

Banco Santander-Chile currently has a consensus target price of $33.00, suggesting a potential upside of 8.20%. Grupo Supervielle has a consensus target price of $11.80, suggesting a potential upside of 35.79%. Given Grupo Supervielle’s higher possible upside, analysts plainly believe Grupo Supervielle is more favorable than Banco Santander-Chile.

Valuation & Earnings

This table compares Banco Santander-Chile and Grupo Supervielle’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Santander-Chile $4.14 billion 3.47 $844.20 million $1.94 15.72
Grupo Supervielle $1.40 billion 0.45 $147.19 million $1.88 4.62

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

Insider and Institutional Ownership

14.2% of Banco Santander-Chile shares are held by institutional investors. Comparatively, 38.0% of Grupo Supervielle shares are held by institutional investors. 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.

Summary

Banco Santander-Chile beats Grupo Supervielle on 11 of the 15 factors compared between the two stocks.

Banco Santander-Chile Company Profile

Banco Santander-Chile provides commercial and retail banking products and services in Chile. It operates through Retail Banking, Middle-Market, and Global Corporate Banking segments. The company offers checking accounts and savings products; consumer, auto, commercial, mortgage, and government-guaranteed loans; credit and debit cards; and Chilean peso and foreign currency denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines. It also provides mutual funds, insurance and stock brokerage, foreign exchange, leasing, factoring, financial consulting, investment management, foreign trade and mortgage financing, treasury, and transactional services, as well as specialized services to finance projects for the real estate industry. In addition, the company offers short-term financing and fund raising, brokerage services, derivatives, securitization, and other tailor-made products. It serves individuals, small to middle-sized entities, companies, and large corporations, as well as universities, government entities, and local and regional governments. The company operates 385 branches, which include 276 under the Santander brand name, 51 under the Select brand name, 7 specialized branches for the middle market, and 31 as auxiliary and payment centers, as well as 926 ATMs. Banco Santander-Chile was founded in 1977 and is headquartered in Santiago, Chile.

Grupo Supervielle Company Profile

Grupo Supervielle S.A., a financial services holding company, provides banking products and services in Argentina. The company operates through Retail Banking, Corporate Banking, Treasury, Consumer Finance, Insurance, and Asset Management & Other Services segments. It accepts deposit accounts; and offers personal loans, foreign trade finance, and loans to the middle and lower-middle-income sectors. The company also offers credit cards; insurance and mutual fund products; and factoring, leasing, cash management, asset management, and microcredit financing services. In addition, it distributes treasury products, such as debt securities; and provides non-financial products and service. The company serves individuals, small and medium-sized enterprises, and medium to large-sized companies. It operates 340 access points, including 180 bank branches, 19 banking payment and collection centers, 80 CCF sales points, and 61 consumer financing branches and other sale points, as well as 521 ATMs and 193 self-service terminals. 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 headquartered in Buenos Aires, Argentina.

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