Banco Santander Chile (NYSE:BSAC – Get Free Report) and MetroCity Bankshares (NASDAQ:MCBS – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
Dividends
Banco Santander Chile pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. MetroCity Bankshares pays an annual dividend of $1.16 per share and has a dividend yield of 3.4%. Banco Santander Chile pays out 42.0% of its earnings in the form of a dividend. MetroCity Bankshares pays out 40.3% 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.
Institutional & Insider Ownership
6.4% of Banco Santander Chile shares are held by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are held by institutional investors. 20.2% of MetroCity Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banco Santander Chile | $4.50 billion | 3.37 | $1.12 billion | $2.62 | 12.29 |
| MetroCity Bankshares | $246.01 million | 4.00 | $68.53 million | $2.88 | 11.88 |
Banco Santander Chile has higher revenue and earnings than MetroCity Bankshares. MetroCity Bankshares 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.
Risk and Volatility
Banco Santander Chile has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.
Profitability
This table compares Banco Santander Chile and MetroCity Bankshares’ 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% |
| MetroCity Bankshares | 28.40% | 15.16% | 1.82% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Banco Santander Chile and MetroCity Bankshares, 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 |
| MetroCity Bankshares | 0 | 1 | 1 | 0 | 2.50 |
Banco Santander Chile currently has a consensus price target of $35.20, suggesting a potential upside of 9.28%. MetroCity Bankshares has a consensus price target of $33.00, suggesting a potential downside of 3.51%. Given Banco Santander Chile’s higher probable upside, research analysts clearly believe Banco Santander Chile is more favorable than MetroCity Bankshares.
Summary
MetroCity Bankshares beats Banco Santander Chile 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 MetroCity Bankshares
MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that engages in the provision of banking products and services in the United States. It offers customary banking services, such as consumer and commercial checking accounts, savings, and money market accounts, as well as certificates of deposit. The company also provides commercial and consumer loans, including single family residential loans; construction and development, and owner and non-owner occupied commercial real estate loans; letters of credit; and commercial and industrial loans, residential mortgage loans, and SBA loans. In addition, it offers online banking services, which include access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions, such as remote check deposit with mobile bill pay; and automated teller machines and telephone banking services. Further, it provides debit cards for checking customers, direct deposits, and cashier's checks; treasury management services, including wire transfer, automated clearing house, and stop payments services; and cash management deposit products, such as remote deposit capture, positive pay, zero balance accounts, and sweep accounts. The company was founded in 2006 and is headquartered in Atlanta, Georgia.
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