Analyzing ERSTE GRP BK A/S (OTCMKTS:EBKDY) & Banco Santander-Chile (OTCMKTS:BSAC)

Banco Santander-Chile (NYSE:BSAC) and ERSTE GRP BK A/S (OTCMKTS:EBKDY) are both large-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Volatility and Risk

Banco Santander-Chile has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, ERSTE GRP BK A/S has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Banco Santander-Chile and ERSTE GRP BK A/S’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Santander-Chile $3.84 billion 3.67 $952.53 million $1.80 16.62
ERSTE GRP BK A/S $9.04 billion 1.76 $1.49 billion N/A N/A

ERSTE GRP BK A/S has higher revenue and earnings than Banco Santander-Chile.

Institutional & Insider Ownership

13.1% of Banco Santander-Chile shares are held by institutional investors. Comparatively, 0.4% of ERSTE GRP BK A/S shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Banco Santander-Chile and ERSTE GRP BK A/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander-Chile 0 1 0 0 2.00
ERSTE GRP BK A/S 0 0 0 0 N/A

Banco Santander-Chile currently has a consensus target price of $32.00, suggesting a potential upside of 6.95%. Given Banco Santander-Chile’s higher probable upside, research analysts clearly believe Banco Santander-Chile is more favorable than ERSTE GRP BK A/S.

Profitability

This table compares Banco Santander-Chile and ERSTE GRP BK A/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander-Chile 22.18% 17.02% 1.41%
ERSTE GRP BK A/S 19.42% 8.83% 0.70%

Dividends

Banco Santander-Chile pays an annual dividend of $0.83 per share and has a dividend yield of 2.8%. ERSTE GRP BK A/S pays an annual dividend of $0.76 per share and has a dividend yield of 4.1%. Banco Santander-Chile pays out 46.1% of its earnings in the form of a dividend.

Summary

Banco Santander-Chile beats ERSTE GRP BK A/S on 7 of the 12 factors compared between the two stocks.

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 380 branches, which include 266 under the Santander brand name, 46 under the Select brand name, 7 specialized branches for the middle market, and 21 as auxiliary and payment centers, as well as 910 ATMs. Banco Santander-Chile was founded in 1977 and is headquartered in Santiago, Chile.

ERSTE GRP BK A/S Company Profile

Erste Group Bank AG provides a range of banking and other financial services to the retail and corporate customers in Austria, Central and Eastern Europe, and internationally. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management and Local Corporate Center, Savings Banks, Group Corporate Center, and Intragroup Elimination segments. It offers savings and current accounts, mortgage and consumer loans, working capital finance, accounts receivable purchasing, structured trade finance, and supply chain finance services; loan syndication services; letters of credit, guarantees, investment finance, acquisition and leveraged finance, commercial real estate finance, buyer's credit, and revolving export credit lines; liquidity management; and hedging and documentary collection services. The company also provides private banking, asset management, investment banking, securities and derivatives trading, portfolio management, project finance, foreign trade financing, corporate finance, capital market and money market, foreign exchange trading, and leasing and factoring services; phone, online, and mobile banking services; and leasing, insurance, investment, and building society products, as well as credit cards. In addition, it offers real estate development and lending; advisory services related to acquisition, divestment, and merger, as well as risk management; analysis services for stock, bond, and commodity markets; and custody and brokerage services. The company operates through 2,565 branches in seven countries. Erste Group Bank AG was founded in 1819 and is headquartered in Vienna, Austria.

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