Critical Comparison: Banco Santander-Chile (BSAC) & The Competition

Banco Santander-Chile (NYSE: BSAC) is one of 304 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Banco Santander-Chile to similar businesses based on the strength of its dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Valuation and Earnings

This table compares Banco Santander-Chile and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Banco Santander-Chile $3.83 billion $618.88 million 17.89
Banco Santander-Chile Competitors $5.55 billion $833.70 million 382.40

Banco Santander-Chile’s competitors have higher revenue and earnings than Banco Santander-Chile. Banco Santander-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.

Risk & Volatility

Banco Santander-Chile has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Banco Santander-Chile’s competitors have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Dividends

Banco Santander-Chile pays an annual dividend of $0.85 per share and has a dividend yield of 2.5%. Banco Santander-Chile pays out 44.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.8% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Banco Santander-Chile and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander-Chile 0 4 0 0 2.00
Banco Santander-Chile Competitors 2069 7984 7841 369 2.36

Banco Santander-Chile currently has a consensus target price of $26.00, suggesting a potential downside of 23.53%. As a group, “Banks” companies have a potential downside of 9.77%. Given Banco Santander-Chile’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Banco Santander-Chile has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

16.7% of Banco Santander-Chile shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Banco Santander-Chile 19.92% 17.51% 1.45%
Banco Santander-Chile Competitors 18.45% 8.28% 0.94%

Summary

Banco Santander-Chile competitors beat Banco Santander-Chile on 11 of the 15 factors compared.

Banco Santander-Chile Company Profile

Banco Santander-Chile (the Bank), formerly Banco Santander Chile, is a Chilean bank. The Bank’s segments include Retail banking, Middle-market, Global Corporate Banking and Corporate Activities (Other). The Retail Banking segment consists of individuals and small to middle-sized entities (SMEs). The Middle-market segment serves companies and large corporations. The Global Corporate Banking segment consists of foreign and domestic multinational companies. The Corporate Activities segment includes its Financial Management Division, which develops global management functions. It provides a range of commercial and retail banking services to its customers, including Chilean peso and foreign currency denominated loans to finance a range of commercial transactions, trade, foreign currency forward contracts and credit lines and a range of retail banking services, including mortgage financing. In addition to its traditional banking operations, the Bank offers a range of financial services.

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