Analyzing Third Coast Bancshares (NASDAQ:TCBX) & Banco De Chile (NYSE:BCH)

Banco De Chile (NYSE:BCH) and Third Coast Bancshares (NASDAQ:TCBX) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Banco De Chile and Third Coast Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco De Chile	$3.89 billion	4.91	$1.30 billion	$2.64	14.34
Third Coast Bancshares	$234.99 million	2.90	$47.67 million	$4.01	10.25

Banco De Chile has higher revenue and earnings than Third Coast Bancshares. Third Coast Bancshares is trading at a lower price-to-earnings ratio than Banco De Chile, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Banco De Chile has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Banco De Chile and Third Coast Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco De Chile	1	4	0	0	1.80
Third Coast Bancshares	0	3	3	1	2.71

Banco De Chile presently has a consensus price target of $39.67, suggesting a potential upside of 4.80%. Third Coast Bancshares has a consensus price target of $47.60, suggesting a potential upside of 15.78%. Given Third Coast Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Third Coast Bancshares is more favorable than Banco De Chile.

Profitability

This table compares Banco De Chile and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco De Chile	31.01%	21.10%	2.26%
Third Coast Bancshares	16.30%	12.05%	1.17%

Dividends

Banco De Chile pays an annual dividend of $1.65 per share and has a dividend yield of 4.4%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 41.0%. Banco De Chile pays out 62.5% of its earnings in the form of a dividend. Third Coast Bancshares pays out 420.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

1.2% of Banco De Chile shares are owned by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are owned by institutional investors. 5.9% of Banco De Chile shares are owned by company insiders. Comparatively, 10.5% of Third Coast Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Third Coast Bancshares beats Banco De Chile on 9 of the 17 factors compared between the two stocks.

About Banco De Chile

Banco de Chile, together with its subsidiaries, provides various banking services to customers in Chile. The company offers checking and debit accounts, debit and credit cards, and lines of credit; mortgage, consume, commercial, general purpose mortgage loans, and finance leases; and factoring services, mutual fund management, stock brokerage, foreign trade, payments and collections, insurance brokerage, including life and general insurance, as well as time deposits, savings instruments, and foreign currency services through branches under the Banco de Chile and Banco Edwards brands. It also provides working capital loans, corporate credit cards, foreign currency brokerage, leasing and long-term syndicated loans, advisory services for mergers acquisitions and debt restructuring; cash management services, including payment and collection services; and international fund transfer networks, current account and deposit products, fund administration, and treasury management. In addition, the company offers insurance brokerage, derivative contracts, transactional banking, financial risks coverage, representation and asset custody, investment banking and management, capital markets products, foreign exchange transactions; and advisory services for initial public offerings, capital increases, sales and purchases of blocks of shares, private capital placements, public share tenders, company valuations, bond issuances, and syndicated loans services. Further, it provides foreign exchange brokerage, forward contracts, interest rate swaps, repurchase agreements, and other investment products based on bonds, mortgage bonds and deposits. The company serves individuals, small and medium-sized companies, corporate clients, and large companies, real estate and construction, and high net worth family office customers. Banco de Chile was founded in 1893 and is headquartered in Santiago, Chile.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.