Financial Review: DNB Bank ASA (OTCMKTS:DNBBY) versus Banco Itaú Chile (NYSE:ITCL)

Banco Itaú Chile (NYSE:ITCL) and DNB Bank ASA (OTCMKTS:DNBBY) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Dividends

Banco Itaú Chile pays an annual dividend of $0.17 per share and has a dividend yield of 5.5%. DNB Bank ASA pays an annual dividend of $1.12 per share and has a dividend yield of 6.4%. Banco Itaú Chile pays out 25.8% of its earnings in the form of a dividend. DNB Bank ASA pays out 48.1% 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.

Profitability

This table compares Banco Itaú Chile and DNB Bank ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Itaú Chile	10.54%	10.65%	0.91%
DNB Bank ASA	19.47%	14.53%	1.04%

Insider & Institutional Ownership

22.2% of Banco Itaú Chile shares are held by institutional investors. 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.

Valuation and Earnings

This table compares Banco Itaú Chile and DNB Bank ASA’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Itaú Chile	$3.99 billion	0.50	$423.68 million	$0.66	4.70
DNB Bank ASA	$17.13 billion	1.59	$3.62 billion	$2.33	7.53

DNB Bank ASA has higher revenue and earnings than Banco Itaú Chile. Banco Itaú Chile is trading at a lower price-to-earnings ratio than DNB Bank ASA, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Banco Itaú Chile and DNB Bank ASA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Itaú Chile	0	0	1	0	3.00
DNB Bank ASA	0	0	0	0	N/A

Summary

DNB Bank ASA beats Banco Itaú Chile on 9 of the 12 factors compared between the two stocks.

About Banco Itaú Chile

Banco Itaú Chile provides banking services in Chile and Colombia. It provides wholesale and corporate banking; real estate and construction; and retail, private, companies, and personal banking services, as well as treasury and other financial services. The company offers checking accounts, and debit and credit card; credit line, consumer credit installments, mortgage credit, and universal consumer and university credit; and leasing and company credits including short term, fixed long term, and structured credit, as well as factoring, foreign trade exports, such as financing line agreement, import payment order, collection, and letter of credit, financing cash operation services. In addition, it provides warranty papers including financed, cash, and web guaranteed tickets; state guarantee services; insurance products, which includes car, home, life, covid19 insurance for workers, financial protection, and assists insurance. The company also offers investment, mutual funds, stock broking, pension savings, and ETF mutual funds; international cash management, cash pooling, secure and rolling from check, bill collection, online payroll, automatic bill payments, and PAC collection services; and fusion and acquisition, bill of commerce, corporate bonds, purchase and sale of currency, short-term liquidly investment, and derivatives. The company was incorporated in 1871 and is headquartered in Santiago, Chile.

About DNB Bank ASA

DNB Bank ASA provides financial services for individual and business customers in Norway and internationally. The company offers savings, current, and pension accounts; fixed rate and security deposits; home and cabin mortgages, car and consumer loans, business loans, and refinancing; car, house, home contents, travel, personal, and non-life insurance product; payment services; and online and mobile banking services, as well as cards. It also provides overdraft facilities; leasing services; factoring, supply chain, and receivable purchase financing services; bank guarantee, secure trading, documentary collection, and letter of credit services; investment banking services, such as mergers and acquisition, equity and debt capital market, shares and securities, mutual funds and trading, and bonds and commodities; and private financing, as well as equity trading, foreign exchange, interest rates, and risk advisory services. In addition, the company offers treasury management, working capital, trade finance, auto lease and equipment financing, and corporate finance services, as well as act as an estate agents. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.