Critical Contrast: Banco Santander Chile (NYSE:BSAC) versus PT Bank Mandiri Persero TBK (OTCMKTS:PPERY)

Banco Santander Chile (NYSE:BSAC) and PT Bank Mandiri Persero TBK (OTCMKTS:PPERY) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Banco Santander Chile has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, PT Bank Mandiri Persero TBK has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Profitability

This table compares Banco Santander Chile and PT Bank Mandiri Persero TBK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Santander Chile	24.95%	21.00%	1.54%
PT Bank Mandiri Persero TBK	N/A	N/A	N/A

Dividends

Banco Santander Chile pays an annual dividend of $1.10 per share and has a dividend yield of 3.3%. PT Bank Mandiri Persero TBK pays an annual dividend of $0.75 per share and has a dividend yield of 8.2%. Banco Santander Chile pays out 47.4% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Banco Santander Chile and PT Bank Mandiri Persero TBK”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	$4.50 billion	3.53	$1.12 billion	$2.32	14.54
PT Bank Mandiri Persero TBK	$10.03 billion	2.13	$3.43 billion	N/A	N/A

PT Bank Mandiri Persero TBK has higher revenue and earnings than Banco Santander Chile.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Banco Santander Chile and PT Bank Mandiri Persero TBK, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Santander Chile	1	3	3	1	2.50
PT Bank Mandiri Persero TBK	0	0	0	0	0.00

Banco Santander Chile presently has a consensus target price of $35.40, suggesting a potential upside of 4.92%. Given Banco Santander Chile’s stronger consensus rating and higher possible upside, research analysts plainly believe Banco Santander Chile is more favorable than PT Bank Mandiri Persero TBK.

Insider and Institutional Ownership

6.4% of Banco Santander Chile shares are owned by institutional investors. Comparatively, 0.0% of PT Bank Mandiri Persero TBK shares are owned by institutional investors. 0.0% of PT Bank Mandiri Persero TBK shares 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.

Summary

Banco Santander Chile beats PT Bank Mandiri Persero TBK on 10 of the 15 factors compared between the two stocks.

About Banco Santander Chile

Banco Santander-Chile, together with its subsidiaries, provides commercial and retail banking services in Chile. It operates through Retail Banking, Middle-Market, Corporate Investment Banking, and Corporate Activities segments. The company offers debit and credit cards, checking accounts, and savings products; consumer, automobile, commercial, mortgage, and government-guaranteed loans; and Chilean peso and foreign currency-denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines, as well as mortgage financing services. It also provides mutual fund management, insurance and securities brokerage, foreign exchange services, financial leasing, financial consulting and advisory, investment management, foreign trade, leasing, factoring, treasury, and transactional services, as well as specialized services to finance residential projects. In addition, the company offers short-term financing and fundraising, and brokerage services, as well as derivatives, securitization, and other products; and manages capital allocations. 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 was incorporated in 1977 and is headquartered in Santiago, Chile. Banco Santander-Chile operates as a subsidiary of Banco Santander, S.A.

About PT Bank Mandiri Persero TBK

PT Bank Mandiri (Persero) Tbk provides various banking products and services to individuals and businesses in Indonesia, Singapore, Hong Kong, Timor Leste, Shanghai, Malaysia, the United Kingdom, and the Cayman Islands. The company operates through Wholesale and Retail segments. It offers savings and current accounts, time deposits, demand deposits, and foreign currency savings and current accounts; motorcycle loans, mortgage loan, and housing loans, as well as loans for various purposes, such as education, home renovation, marriage, health, and other needs for individuals; and working capital loans, investment loans, people's business loans, syndicated loans, and micro business loans for businesses. The company also provides investment products comprising mutual funds, stocks, and bonds; life, health, and accident insurance products; credit, debit, and corporate cards; digital banking; e-banking services; digital lending; cash management services; trade finance services, value chain, supply chain management, global and domestic trade, export and import, standby letter of credit, and bank guarantee, as well as spot and forex services; custodial services; treasury services, including cash transaction/liquidity, hedging, and investment products; trust services comprising trustee, paying agent, security agent, escrow agent, monitoring agent, and receiving bank services; and money transfer, remittance services, and venture capital financing. It operates branch offices, sub-branch offices, and overseas branch offices; and ATM facilities. The company was founded in 1998 and is headquartered in Jakarta, Indonesia.