Woori Bank (NYSE:WF) and Banco Santander-Chile (NYSE:BSAC) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

0.5% of Woori Bank shares are owned by institutional investors. Comparatively, 14.3% of Banco Santander-Chile shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Woori Bank and Banco Santander-Chile, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Woori Bank 0 0 1 0 3.00
Banco Santander-Chile 1 2 1 0 2.00

Banco Santander-Chile has a consensus target price of $33.00, indicating a potential upside of 6.42%. Given Banco Santander-Chile’s higher probable upside, analysts plainly believe Banco Santander-Chile is more favorable than Woori Bank.

Earnings & Valuation

This table compares Woori Bank and Banco Santander-Chile’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Woori Bank $8.94 billion 1.10 $1.42 billion $5.40 8.13
Banco Santander-Chile $4.14 billion 3.53 $844.20 million $1.94 15.98

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

Dividends

Woori Bank pays an annual dividend of $1.17 per share and has a dividend yield of 2.7%. Banco Santander-Chile pays an annual dividend of $1.12 per share and has a dividend yield of 3.6%. Woori Bank pays out 21.7% of its earnings in the form of a dividend. Banco Santander-Chile pays out 57.7% 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 Woori Bank and Banco Santander-Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Woori Bank 17.52% 8.01% 0.52%
Banco Santander-Chile 22.71% 18.49% 1.58%

Risk & Volatility

Woori Bank has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Banco Santander-Chile has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Summary

Banco Santander-Chile beats Woori Bank on 8 of the 14 factors compared between the two stocks.

Woori Bank Company Profile

Woori Bank engages in the provision of personal and commercial banking services. It operates through the following segments: Consumer Banking, Corporate Banking, Investment Banking, Capital Markets, Credit Cards, and Other Operations. The Consumer Banking segment consists of lending to and taking deposits from its retail customers. The Corporate Banking segment provides commercial banking services to large corporate customers including government-owned enterprises and small- and medium-sized enterprises. The Investment Banking segment offers project finance and financial advisory services. The Capital Markets segment includes securities investment and trading, derivatives trading, asset securitization services, and investment banking. The Credit Cards segment comprises of Woori, BC Card, and Visa brands. The Other Operations segment manages credit management and collection department, treasury operations, including transactions of available-for-sale securities and financing among financial institutions. The compan ywas founded on January 30, 1899 and is headquartered in Seoul, South Korea.

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.

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