Comparing ANZ (ANZBY) & Banco de Chile (BCH)

Banco de Chile (NYSE:BCH) and ANZ (OTCMKTS:ANZBY) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Profitability

This table compares Banco de Chile and ANZ’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco de Chile 23.39% 16.66% 1.58%
ANZ N/A N/A N/A

Earnings & Valuation

This table compares Banco de Chile and ANZ’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco de Chile $3.61 billion 3.94 $870.29 million $1.70 16.56
ANZ $26.98 billion 2.08 $4.87 billion $1.73 11.25

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

Institutional & Insider Ownership

2.2% of Banco de Chile shares are owned by institutional investors. Comparatively, 0.1% of ANZ shares are owned by institutional investors. 0.3% of ANZ shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Banco de Chile has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, ANZ has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Dividends

Banco de Chile pays an annual dividend of $0.79 per share and has a dividend yield of 2.8%. ANZ pays an annual dividend of $1.11 per share and has a dividend yield of 5.7%. Banco de Chile pays out 46.5% of its earnings in the form of a dividend. ANZ pays out 64.2% 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. Banco de Chile has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a breakdown of current ratings for Banco de Chile and ANZ, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco de Chile 1 1 0 0 1.50
ANZ 1 2 1 0 2.00

Banco de Chile currently has a consensus price target of $76.00, suggesting a potential upside of 169.98%. Given Banco de Chile’s higher possible upside, equities research analysts plainly believe Banco de Chile is more favorable than ANZ.

Summary

Banco de Chile beats ANZ on 9 of the 17 factors compared between the two stocks.

About Banco de Chile

Banco de Chile, together with its subsidiaries, provides banking and financial products and services to customers in Chile. The company operates through four segments: Retail, Wholesale, Treasury and Money Market Operations, and Subsidiaries. It offers deposit products, such as checking accounts, current accounts, demand deposits, demand accounts, saving accounts, and time deposits; credit cards; installment loans; credit lines; and residential mortgage loans, as well as short and long term financing. The company also provides commercial loans, such as factoring and leasing; trade finance services; liquidity management services, debt instruments, foreign trade, and derivative contracts; capital market services; cash management and non-lending services that include payroll, payment, and collection services, as well as treasury, financial advisory, and risk management products. In addition, it offers financial services, such as securities brokerage, mutual funds management, investment banking, insurance brokerage, and securitization services. The company serves customers in individuals; small and medium enterprises; and wholesale customers. As of December 31, 2017, it operated through 399 branches comprising 253 branches under the Banco de Chile brand name, 41 branches under the Banco Edwards Citi brand name, and 105 branches under the Banco CrediChile brand name, as well as 1,464 automatic teller machines. Banco de Chile was founded in 1855 and is headquartered in Santiago, Chile.

About ANZ

Australia and New Zealand Banking Group Limited provides various banking and financial products and services. The company's Australia division offers retail products and services to consumers through the branch network, mortgage specialists, contact centers, and third party brokers, as well as self-service channels, such as Internet banking, phone banking, ATMs, Website, and digital banking; and banking products and financial services, including asset financing to medium to large commercial customers, agribusiness customers, small business owners, high net worth individuals, and family groups. Its Institutional division provides working capital and liquidity solutions, which include documentary trade, supply chain financing, commodity financing, cash management solutions, deposits, payments, and clearing; loan syndication, specialized loan structuring and execution, project and export finance, debt structuring and acquisition finance, and corporate advisory services, as well as loan products; and risk management services on foreign exchange, interest rates, credit, commodities, and debt capital markets. The company's New Zealand division offers banking and wealth management services to consumer, and private banking and small business banking customers; and relationship banking and financial solutions to medium to large enterprises, and agricultural businesses. Its Wealth Australia division provides lenders mortgage insurance, share investing, financial planning, and general insurance distribution services. The company's Asia Retail & Pacific division offers general banking and wealth management services to retail customers; and products and services to retail customers, small to medium-sized enterprises, institutional customers, and governments. Australia and New Zealand Banking Group Limited has operations in Australia, the Asia Pacific, Europe, the Americas, and New Zealand. The company was founded in 1835 and is headquartered in Docklands, Australia.

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