Banco Santander Chile (NYSE:BSAC – Get Free Report) and TFS Financial (NASDAQ:TFSL – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Dividends
Banco Santander Chile pays an annual dividend of $1.10 per share and has a dividend yield of 3.5%. TFS Financial pays an annual dividend of $1.27 per share and has a dividend yield of 7.9%. Banco Santander Chile pays out 42.0% of its earnings in the form of a dividend. TFS Financial pays out 352.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Ratings
This is a breakdown of current ratings and price targets for Banco Santander Chile and TFS Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banco Santander Chile | 1 | 4 | 3 | 1 | 2.44 |
| TFS Financial | 0 | 3 | 1 | 0 | 2.25 |
Volatility and Risk
Banco Santander Chile has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, TFS Financial has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
Earnings and Valuation
This table compares Banco Santander Chile and TFS Financial”s top-line 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 | 3.31 | $1.12 billion | $2.62 | 12.07 |
| TFS Financial | $791.96 million | 5.71 | $90.96 million | $0.36 | 44.78 |
Banco Santander Chile has higher revenue and earnings than TFS Financial. Banco Santander Chile is trading at a lower price-to-earnings ratio than TFS Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Banco Santander Chile and TFS Financial’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% |
| TFS Financial | 12.36% | 5.32% | 0.58% |
Institutional & Insider Ownership
6.4% of Banco Santander Chile shares are owned by institutional investors. Comparatively, 9.8% of TFS Financial shares are owned by institutional investors. 0.7% of TFS Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Banco Santander Chile beats TFS Financial on 10 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 TFS Financial
TFS Financial Corporation, through its subsidiaries, provides retail consumer banking services in the United States. Its deposit products include savings, money market, checking, individual retirement, and other qualified plan accounts, as well as certificates of deposit. The company also provides residential real estate mortgage loans, residential construction loans, and home equity loans and lines of credit, as well as purchase mortgages and first mortgage refinance loans. In addition, it offers escrow and settlement services. The company provides its products and services through its main office in Cleveland, Ohio; and multiple full-service branches and loan production offices located throughout the states of Ohio and Florida. TFS Financial Corporation was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation is a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.
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