Reviewing Provident Financial Holdings (PROV) & Banco Santander-Chile (BSAC)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Provident Financial Holdings and Banco Santander-Chile, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provident Financial Holdings 0 3 0 0 2.00
Banco Santander-Chile 0 2 1 0 2.33

Provident Financial Holdings presently has a consensus target price of $20.00, indicating a potential upside of 1.57%. Banco Santander-Chile has a consensus target price of $26.00, indicating a potential downside of 12.07%. Given Provident Financial Holdings’ higher possible upside, research analysts clearly believe Provident Financial Holdings is more favorable than Banco Santander-Chile.

Profitability

This table compares Provident Financial Holdings and Banco Santander-Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Provident Financial Holdings 7.11% 3.96% 0.43%
Banco Santander-Chile 29.10% 20.58% 1.69%

Dividends

Provident Financial Holdings pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. Banco Santander-Chile does not pay a dividend. Provident Financial Holdings pays out 87.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Provident Financial Holdings and Banco Santander-Chile’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Provident Financial Holdings $67.60 million 2.25 $4.94 million $0.64 30.77
Banco Santander-Chile $2.20 billion 6.33 N/A N/A N/A

Provident Financial Holdings has higher revenue, but lower earnings than Banco Santander-Chile.

Summary

Banco Santander-Chile beats Provident Financial Holdings on 8 of the 11 factors compared between the two stocks.

Provident Financial Holdings Company Profile

Provident Financial Holdings, Inc. is the holding company of Provident Savings Bank, F.S.B. (the Bank). The Bank is a federally chartered stock savings bank. The Company operates through two segments: Provident Bank and Provident Bank Mortgage (PBM). The Bank’s operations primarily consist of accepting deposits from customers within the communities surrounding the Bank’s full service offices and investing those funds in single-family loans, multi-family loans, commercial real estate loans, construction loans, commercial business loans, consumer loans and other mortgage loans. PBM operations primarily consist of the origination, purchase and sale of mortgage loans secured by single-family residences. The Bank is a financial services company committed to serving consumers and small to mid-sized businesses in the Inland Empire region of Southern California. The Bank offers business checking accounts, other business banking services and services loans for others.

Banco Santander-Chile Company Profile

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.

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