Reviewing BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) and Banco De Chile (NYSE:BCH)

Banco De Chile (NYSE:BCH) and BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

1.2% of Banco De Chile shares are held by institutional investors. Comparatively, 36.0% of BCB Bancorp, Inc. (NJ) shares are held by institutional investors. 5.9% of Banco De Chile shares are held by company insiders. Comparatively, 9.0% of BCB Bancorp, Inc. (NJ) shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Banco De Chile and BCB Bancorp, Inc. (NJ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco De Chile	30.05%	22.33%	2.42%
BCB Bancorp, Inc. (NJ)	-90.51%	-55.94%	-4.79%

Earnings and Valuation

This table compares Banco De Chile and BCB Bancorp, Inc. (NJ)”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco De Chile	$3.89 billion	4.76	$1.30 billion	$2.64	13.90
BCB Bancorp, Inc. (NJ)	$101.75 million	1.58	-$12.53 million	($8.24)	-1.08

Banco De Chile has higher revenue and earnings than BCB Bancorp, Inc. (NJ). BCB Bancorp, Inc. (NJ) 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.

Dividends

Banco De Chile pays an annual dividend of $1.65 per share and has a dividend yield of 4.5%. BCB Bancorp, Inc. (NJ) pays an annual dividend of $0.32 per share and has a dividend yield of 3.6%. Banco De Chile pays out 62.5% of its earnings in the form of a dividend. BCB Bancorp, Inc. (NJ) pays out -3.9% 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.

Risk and Volatility

Banco De Chile has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, BCB Bancorp, Inc. (NJ) has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Banco De Chile and BCB Bancorp, Inc. (NJ), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco De Chile	1	4	0	0	1.80
BCB Bancorp, Inc. (NJ)	1	4	0	0	1.80

Banco De Chile presently has a consensus target price of $39.67, indicating a potential upside of 8.11%. BCB Bancorp, Inc. (NJ) has a consensus target price of $8.95, indicating a potential upside of 1.02%. Given Banco De Chile’s higher probable upside, equities research analysts clearly believe Banco De Chile is more favorable than BCB Bancorp, Inc. (NJ).

Summary

Banco De Chile beats BCB Bancorp, Inc. (NJ) on 10 of the 14 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 BCB Bancorp, Inc. (NJ)

BCB Bancorp, Inc. operates as a bank holding company for BCB Community Bank that engages in the provision of banking products and services to businesses and individuals in the United States. The company offers insured deposit products, including savings and club accounts, interest and non-interest-bearing demand accounts, money market accounts, certificates of deposit, and individual retirement accounts. It also provides various loan products, such as commercial and multi-family real estate loans, one-to-four family mortgage loans, commercial business loans, construction loans, home equity loans, and consumer loans. In addition, the company offers retail and commercial banking services comprising wire transfer, money order, safe deposit box, night depository, debit card, online and mobile banking, fraud detection, and automated teller services. The company was founded in 2000 and is based in Bayonne, New Jersey.