ST BK CORP/SH SH (OTCMKTS:SBAZ) and Banco de Chile (NYSE:BCH) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Valuation and Earnings

This table compares ST BK CORP/SH SH and Banco de Chile’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ST BK CORP/SH SH $27.96 million 3.09 $6.29 million N/A N/A
Banco de Chile $3.84 billion 3.80 $929.56 million $5.53 15.65

Banco de Chile has higher revenue and earnings than ST BK CORP/SH SH.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ST BK CORP/SH SH and Banco de Chile, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ST BK CORP/SH SH 0 0 0 0 N/A
Banco de Chile 3 1 0 0 1.25

Banco de Chile has a consensus target price of $91.00, suggesting a potential upside of 5.14%. Given Banco de Chile’s higher possible upside, analysts plainly believe Banco de Chile is more favorable than ST BK CORP/SH SH.

Dividends

ST BK CORP/SH SH pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Banco de Chile pays an annual dividend of $2.32 per share and has a dividend yield of 2.7%. Banco de Chile pays out 42.0% of its earnings in the form of a dividend. Banco de Chile has raised its dividend for 6 consecutive years. Banco de Chile is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares ST BK CORP/SH SH and Banco de Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ST BK CORP/SH SH 26.22% N/A N/A
Banco de Chile 25.37% 17.90% 1.74%

Risk and Volatility

ST BK CORP/SH SH has a beta of -0.27, indicating that its share price is 127% less volatile than the S&P 500. Comparatively, Banco de Chile has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Institutional and Insider Ownership

0.4% of ST BK CORP/SH SH shares are held by institutional investors. Comparatively, 1.3% of Banco de Chile shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Banco de Chile beats ST BK CORP/SH SH on 11 of the 13 factors compared between the two stocks.

ST BK CORP/SH SH Company Profile

State Bank Corp. operates as the holding company for Mohave State Bank that provides various banking services to individuals, businesses, and professionals in the United States. The company offers checking and savings accounts, certificates of deposit, and individual retirement accounts, as well as college savings plans. It also provides business loans, including revolving line of credit, commercial and industrial loans, commercial real estate loans, construction loans, USDA loans, and small business administration loans; personal loans, such as auto, boat, recreational vehicle, ATV, motorcycle, personal watercraft, lot, storage condo, cash secured, and unsecured loans; home equity line of credit; and mortgage loans. In addition, the company offers debit cards, and merchant and payroll services, as well as online, mobile, and phone banking services. As of June 05, 2017, it operated through nine full-service branches located in Mohave and Yavapai Counties, Arizona. The company was founded in 1991 and is headquartered in Lake Havasu City, Arizona.

Banco de Chile Company Profile

Banco de Chile provides various banking products and services to individuals, corporate clients, large companies, and small and medium-sized companies in Chile and internationally. The company operates through four segments: Retail, Wholesale, Treasury, and Subsidiaries. It offers checking accounts; personal, car, and mortgage loans; credit cards; credit lines; and investment products, such as fixed-term, automatic renewal, and tax benefit deposits, as well as stocks, portfolio management, voluntary retirement savings/mutual funds, foreign currency, and fixed income investment products. The company also provides insurance products and trust commissions, as well as financial consultancy services related to mergers and acquisitions, liabilities financing and restructuring, capital contribution, bonds and stocks emissions, and international business. In addition, it offers debt instruments; derivative contracts; and liquidity management, currency trading, foreign exchange transaction, international and treasury banking, securities brokerage, mutual fund and investment management, and securitization services, as well as payment management and collection services. Further, the company provides financing for importers and exporters; and factoring, leasing, express payment, electronic banking, and online payment services. It operates a network of approximately 423 branches and 1,453 ATMs. Banco de Chile was founded in 1855 and is headquartered in Santiago, Chile.

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