Itau Corpbanca (NYSE: ITCB) and Simmons First National Corporation (NASDAQ:SFNC) are both mid-cap banks – nec companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Insider and Institutional Ownership

52.0% of Simmons First National Corporation shares are held by institutional investors. 4.6% of Simmons First National Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Itau Corpbanca and Simmons First National Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Itau Corpbanca N/A N/A N/A $0.26 51.81
Simmons First National Corporation $440.39 million 5.73 $96.81 million $3.16 17.38

Simmons First National Corporation has higher revenue and earnings than Itau Corpbanca. Simmons First National Corporation is trading at a lower price-to-earnings ratio than Itau Corpbanca, indicating that it is currently the more affordable of the two stocks.

Dividends

Simmons First National Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Itau Corpbanca does not pay a dividend. Simmons First National Corporation pays out 31.6% of its earnings in the form of a dividend.

Volatility & Risk

Itau Corpbanca has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Simmons First National Corporation has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Itau Corpbanca and Simmons First National Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Itau Corpbanca 0 1 0 0 2.00
Simmons First National Corporation 0 4 1 0 2.20

Simmons First National Corporation has a consensus target price of $61.75, indicating a potential upside of 12.44%. Given Simmons First National Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Simmons First National Corporation is more favorable than Itau Corpbanca.

Profitability

This table compares Itau Corpbanca and Simmons First National Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Itau Corpbanca 20.52% 8.05% 0.92%
Simmons First National Corporation 21.58% 8.79% 1.19%

Summary

Simmons First National Corporation beats Itau Corpbanca on 12 of the 13 factors compared between the two stocks.

Itau Corpbanca Company Profile

Itau Corpbanca is a Chile-based financial institution (the Bank) engaged in the banking sector. The Bank operates in seven segments: Large, Corporate and Real Estate Companies, which includes companies that belong to major economic groups and specific industries; Companies, which includes leasing, factoring and other financial services for business customers; Traditional and Private Banking, which offers checking accounts, consumer loans, credit cards and mortgage loans; Lower Income Retail Banking, corresponding to operations of Banco Condell, which offers consumer loans, credit cards and mortgage loans; Treasury and International, which comprises treasury activities, such as financial management and funding; Non-Banking Financial Services, which provides services rendered by its subsidiaries, including insurance brokerage, financial advisory and securities brokerage, and Colombia, which includes commercial and retail banking services provided by CorpBanca Colombia and Helm Bank.

Simmons First National Corporation Company Profile

Simmons First National Corporation is a financial holding company. The Company, through its subsidiary bank, Simmons Bank, provides financial services to individuals and businesses throughout the market areas they serve. As of December 31, 2016, Simmons Bank conducted banking operations through 150 financial centers located in communities throughout Arkansas, Kansas, Missouri, Tennessee, Colorado, Oklahoma and Texas. Simmons Bank offers consumer, real estate and commercial loans, checking and savings deposits. Simmons Bank and its subsidiaries have also developed products and services, which include credit cards, investments, agricultural finance lending, equipment lending, insurance and small business administration lending. The securities within the portfolio are classified as either held-to-maturity, available-for-sale or trading. The Company offers deposits, including non-interest bearing transaction accounts; interest bearing transaction accounts, and time deposits.

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