Banco Santander-Chile (OTCMKTS: OVCHY) and OVERSEA-CHINESE/ADR (OTCMKTS:OVCHY) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Profitability

This table compares Banco Santander-Chile and OVERSEA-CHINESE/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander-Chile 22.58% 18.75% 1.62%
OVERSEA-CHINESE/ADR 31.48% 10.39% 0.97%

Valuation and Earnings

This table compares Banco Santander-Chile and OVERSEA-CHINESE/ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Santander-Chile $4.14 billion 3.48 $844.20 million $1.94 15.76
OVERSEA-CHINESE/ADR $13.33 billion 2.57 $4.15 billion N/A N/A

OVERSEA-CHINESE/ADR has higher revenue and earnings than Banco Santander-Chile.

Risk and Volatility

Banco Santander-Chile has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, OVERSEA-CHINESE/ADR has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Dividends

Banco Santander-Chile pays an annual dividend of $1.12 per share and has a dividend yield of 3.7%. OVERSEA-CHINESE/ADR pays an annual dividend of $0.51 per share and has a dividend yield of 3.1%. Banco Santander-Chile pays out 57.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

15.5% of Banco Santander-Chile shares are owned by institutional investors. Comparatively, 0.0% of OVERSEA-CHINESE/ADR shares are owned by institutional investors. 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Banco Santander-Chile and OVERSEA-CHINESE/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander-Chile 2 2 0 0 1.50
OVERSEA-CHINESE/ADR 0 0 0 0 N/A

Banco Santander-Chile currently has a consensus target price of $29.50, suggesting a potential downside of 3.50%. Given Banco Santander-Chile’s higher possible upside, equities research analysts plainly believe Banco Santander-Chile is more favorable than OVERSEA-CHINESE/ADR.

Summary

Banco Santander-Chile beats OVERSEA-CHINESE/ADR on 7 of the 11 factors compared between the two stocks.

Banco Santander-Chile Company Profile

Banco Santander-Chile provides commercial and retail banking products and services in Chile. It operates through Retail Banking, Middle-Market, and Global Corporate Banking segments. The company offers checking accounts and savings products; consumer, auto, commercial, mortgage, and government-guaranteed loans; credit and debit cards; and Chilean peso and foreign currency denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines. It also provides mutual funds, insurance and stock brokerage, foreign exchange, leasing, factoring, financial consulting, investment management, foreign trade and mortgage financing, treasury, and transactional services, as well as specialized services to finance projects for the real estate industry. In addition, the company offers short-term financing and fund raising, brokerage services, derivatives, securitization, and other tailor-made products. 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 operates 385 branches, which include 276 under the Santander brand name, 51 under the Select brand name, 7 specialized branches for the middle market, and 31 as auxiliary and payment centers, as well as 926 ATMs. Banco Santander-Chile was founded in 1977 and is headquartered in Santiago, Chile.

OVERSEA-CHINESE/ADR Company Profile

Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides a range of products and services to individuals, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, bancassurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high net worth individuals. Its Global Corporate/Investment Banking segment provides project financing, overdrafts, trade financing, and deposit accounts; fee-based services, such as cash management and custodian services; and investment banking services, including financing solutions, syndicated loans and advisory services, corporate finance services for initial public offerings, secondary fund-raising, and takeovers and mergers, as well as customized and structured equity-linked financing services. It serves corporates, public sector, and small and medium enterprises. The company's Global Treasury and Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as provision of structured treasury products and financial solutions. Its OCBC Wing Hang segment offers commercial banking, consumer financing, share brokerage, and insurance services. The company's Insurance segment provides fund management services, and life and general insurance products. Its Others segment is involved in property and investment holding activities. As of May 7, 2018, the company operated a network of 590 branches and representative offices in 18 countries and regions. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

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