Banco Santander-Chile (NYSE: BSAC) and Banco Santander (NYSE:SAN) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Institutional & Insider Ownership
16.1% of Banco Santander-Chile shares are held by institutional investors. Comparatively, 1.2% of Banco Santander shares are held by institutional investors. 9.5% of Banco Santander shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Banco Santander-Chile and Banco Santander, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Banco Santander-Chile currently has a consensus price target of $28.00, indicating a potential downside of 15.64%. Banco Santander has a consensus price target of $15.85, indicating a potential upside of 139.43%. Given Banco Santander’s stronger consensus rating and higher possible upside, analysts clearly believe Banco Santander is more favorable than Banco Santander-Chile.
This table compares Banco Santander-Chile and Banco Santander’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Banco Santander-Chile has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Banco Santander has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
Earnings & Valuation
This table compares Banco Santander-Chile and Banco Santander’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Banco Santander-Chile||$4.14 billion||3.78||$915.64 million||$1.86||17.84|
|Banco Santander||$54.66 billion||1.94||$8.50 billion||$0.53||12.49|
Banco Santander has higher revenue and earnings than Banco Santander-Chile. Banco Santander 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.
Banco Santander-Chile pays an annual dividend of $0.85 per share and has a dividend yield of 2.6%. Banco Santander pays an annual dividend of $0.16 per share and has a dividend yield of 2.4%. Banco Santander-Chile pays out 45.7% of its earnings in the form of a dividend. Banco Santander pays out 30.2% 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.
About Banco Santander-Chile
Banco Santander-Chile (the Bank), formerly Banco Santander Chile, is a Chilean bank. The Bank’s segments include Retail banking, Middle-market, Global Corporate Banking and Corporate Activities (Other). The Retail Banking segment consists of individuals and small to middle-sized entities (SMEs). The Middle-market segment serves companies and large corporations. The Global Corporate Banking segment consists of foreign and domestic multinational companies. The Corporate Activities segment includes its Financial Management Division, which develops global management functions. It provides a range of commercial and retail banking services to its customers, including Chilean peso and foreign currency denominated loans to finance a range of commercial transactions, trade, foreign currency forward contracts and credit lines and a range of retail banking services, including mortgage financing. In addition to its traditional banking operations, the Bank offers a range of financial services.
About Banco Santander
Banco Santander, S.A. is a retail and commercial bank. The Banks segments include Continental Europe, the United Kingdom, Latin America and the United States. The Continental Europe segment covers all businesses in the Continental Europe. The United Kingdom segment includes the businesses developed by various units and branches in the country. The Latin America segment embraces all its financial activities conducted through its banks and subsidiaries in the region. The United States segment includes the Intermediate Holding Company (IHC) and its subsidiaries Santander Bank, Banco Santander Puerto Rico, Santander Consumer USA, Banco Santander International, Santander Investment Securities, and the Santander branch in New York. The Company’s commercial model satisfies the needs of all types of customers: individuals with various income levels.
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