Banco Santander Chile (NYSE:BSAC – Get Free Report) and International Bancshares (NASDAQ:IBOC – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Profitability
This table compares Banco Santander Chile and International Bancshares’ 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% |
| International Bancshares | 38.83% | 12.67% | 2.47% |
Volatility & Risk
Banco Santander Chile has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, International Bancshares has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.
Institutional & Insider Ownership
6.4% of Banco Santander Chile shares are held by institutional investors. Comparatively, 65.9% of International Bancshares shares are held by institutional investors. 13.1% of International Bancshares 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.
Valuation & Earnings
This table compares Banco Santander Chile and International Bancshares”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 | 3.36 | $1.12 billion | $2.64 | 12.15 |
| International Bancshares | $859.07 million | 4.97 | $412.29 million | $6.63 | 10.35 |
Banco Santander Chile has higher revenue and earnings than International Bancshares. International Bancshares 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.
Analyst Ratings
This is a summary of recent ratings and price targets for Banco Santander Chile and International Bancshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banco Santander Chile | 1 | 4 | 3 | 1 | 2.44 |
| International Bancshares | 0 | 0 | 1 | 0 | 3.00 |
Banco Santander Chile currently has a consensus target price of $35.20, suggesting a potential upside of 9.76%. International Bancshares has a consensus target price of $85.00, suggesting a potential upside of 23.88%. Given International Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe International Bancshares is more favorable than Banco Santander Chile.
Dividends
Banco Santander Chile pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. International Bancshares pays an annual dividend of $1.46 per share and has a dividend yield of 2.1%. Banco Santander Chile pays out 41.7% of its earnings in the form of a dividend. International Bancshares pays out 22.0% 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. International Bancshares has raised its dividend for 16 consecutive years.
Summary
International Bancshares beats Banco Santander Chile on 11 of the 18 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 International Bancshares
International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.
Receive News & Ratings for Banco Santander Chile Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Banco Santander Chile and related companies with MarketBeat.com's FREE daily email newsletter.
