Critical Contrast: Banco De Chile (BCH) and Its Peers

Banco De Chile (NYSE: BCH) is one of 315 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Banco De Chile to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Profitability

This table compares Banco De Chile and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco De Chile 24.17% 18.18% 1.74%
Banco De Chile Competitors 18.47% 8.31% 0.94%

Valuation and Earnings

This table compares Banco De Chile and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Banco De Chile $3.62 billion $857.77 million 16.22
Banco De Chile Competitors $5.53 billion $818.14 million 390.26

Banco De Chile’s competitors have higher revenue, but lower earnings than Banco De Chile. Banco De Chile is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

1.4% of Banco De Chile shares are owned by institutional investors. Comparatively, 52.5% of shares of all “Banks” companies are owned by institutional investors. 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Banco De Chile has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Banco De Chile’s competitors have a beta of 0.80, meaning that their average share price is 20% less volatile than the S&P 500.

Dividends

Banco De Chile pays an annual dividend of $2.12 per share and has a dividend yield of 2.6%. Banco De Chile pays out 41.4% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.4% of their earnings in the form of a dividend. Banco De Chile has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and price targets for Banco De Chile and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco De Chile 0 3 1 0 2.25
Banco De Chile Competitors 2147 8482 8535 332 2.36

Banco De Chile presently has a consensus target price of $84.00, suggesting a potential upside of 1.19%. As a group, “Banks” companies have a potential downside of 1.63%. Given Banco De Chile’s higher possible upside, analysts clearly believe Banco De Chile is more favorable than its competitors.

Summary

Banco De Chile competitors beat Banco De Chile on 9 of the 15 factors compared.

About Banco De Chile

Banco de Chile is a full service financial institution, which is engaged in providing credit and non-credit products and services in Chile. The Bank offers a range of banking services to its customers, ranging from individuals to corporations. The Bank’s segments include Retail, which focuses on individuals and small and medium-sized companies, where the product offering focuses on consumer loans, commercial loans, checking accounts, credit cards, credit lines and mortgage loans; Wholesale, which focuses on corporate clients and companies, where the product offering focuses on commercial loans, checking accounts and liquidity management services, debt instruments, foreign trade, derivative contracts and leases; Treasury, which includes the associated revenues to the management of the investment portfolio and the business of financial transactions and currency trading, and Subsidiaries, which corresponds to companies and corporations controlled by the Bank.

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