Banco Santander Chile (NYSE:BSAC – Get Free Report) and Northeast Bancorp (NASDAQ:NBN – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.
Earnings and Valuation
This table compares Banco Santander Chile and Northeast Bancorp”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 | $4.50 billion | 3.34 | $1.12 billion | $2.62 | 12.19 |
| Northeast Bancorp | $385.07 million | 2.70 | $107.48 million | $12.72 | 9.97 |
Dividends
Banco Santander Chile pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Banco Santander Chile pays out 42.0% of its earnings in the form of a dividend. Northeast Bancorp pays out 0.3% 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 current recommendations and price targets for Banco Santander Chile and Northeast Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banco Santander Chile | 1 | 4 | 3 | 1 | 2.44 |
| Northeast Bancorp | 0 | 1 | 2 | 0 | 2.67 |
Banco Santander Chile presently has a consensus price target of $35.40, indicating a potential upside of 10.86%. Northeast Bancorp has a consensus price target of $143.50, indicating a potential upside of 13.12%. Given Northeast Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Northeast Bancorp is more favorable than Banco Santander Chile.
Volatility & Risk
Banco Santander Chile has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Northeast Bancorp has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.
Profitability
This table compares Banco Santander Chile and Northeast Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banco Santander Chile | 27.04% | 22.94% | 1.70% |
| Northeast Bancorp | 27.91% | 19.35% | 2.22% |
Institutional and Insider Ownership
6.4% of Banco Santander Chile shares are held by institutional investors. 14.2% of Northeast Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Banco Santander Chile beats Northeast Bancorp on 9 of the 17 factors compared between the two stocks.
About Banco Santander Chile
Banco Santander-Chile, together with its subsidiaries, provides commercial and retail banking services in Chile. It operates through Retail Banking, Middle-Market, Corporate Investment Banking, and Corporate Activities segments. The company offers debit and credit cards, checking accounts, and savings products; consumer, automobile, commercial, mortgage, and government-guaranteed loans; and Chilean peso and foreign currency-denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines, as well as mortgage financing services. It also provides mutual fund management, insurance and securities brokerage, foreign exchange services, financial leasing, financial consulting and advisory, investment management, foreign trade, leasing, factoring, treasury, and transactional services, as well as specialized services to finance residential projects. In addition, the company offers short-term financing and fundraising, and brokerage services, as well as derivatives, securitization, and other products; and manages capital allocations. 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 was incorporated in 1977 and is headquartered in Santiago, Chile. Banco Santander-Chile operates as a subsidiary of Banco Santander, S.A.
About Northeast Bancorp
Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.
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