Comparing Banco de Chile (NYSE:BCH) & Bank of N.T. Butterfield & Son (NYSE:NTB)

Banco de Chile (NYSE:BCH) and Bank of N.T. Butterfield & Son (NYSE:NTB) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Dividends

Banco de Chile pays an annual dividend of $0.79 per share and has a dividend yield of 2.8%. Bank of N.T. Butterfield & Son does not pay a dividend. Banco de Chile pays out 46.5% of its earnings in the form of a dividend. Banco de Chile has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for Banco de Chile and Bank of N.T. Butterfield & Son, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco de Chile 1 1 0 0 1.50
Bank of N.T. Butterfield & Son 0 0 3 0 3.00

Banco de Chile presently has a consensus target price of $76.00, indicating a potential upside of 166.95%. Bank of N.T. Butterfield & Son has a consensus target price of $45.33, indicating a potential upside of 26.28%. Given Banco de Chile’s higher possible upside, research analysts clearly believe Banco de Chile is more favorable than Bank of N.T. Butterfield & Son.

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, Bank of N.T. Butterfield & Son has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.

Insider & Institutional Ownership

2.2% of Banco de Chile shares are held by institutional investors. Comparatively, 71.6% of Bank of N.T. Butterfield & Son shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Banco de Chile and Bank of N.T. Butterfield & Son’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%
Bank of N.T. Butterfield & Son 37.06% 23.28% 1.86%

Valuation and Earnings

This table compares Banco de Chile and Bank of N.T. Butterfield & Son’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco de Chile $3.61 billion 3.98 $870.29 million $1.70 16.75
Bank of N.T. Butterfield & Son $517.80 million 3.79 $195.18 million $3.53 10.17

Banco de Chile has higher revenue and earnings than Bank of N.T. Butterfield & Son. Bank of N.T. Butterfield & Son 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.

Summary

Bank of N.T. Butterfield & Son beats Banco de Chile on 9 of the 16 factors compared between the two stocks.

Banco de Chile Company Profile

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.

Bank of N.T. Butterfield & Son Company Profile

The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. It accepts retail and corporate checking, savings, term, and non-interest bearing deposits, as well as certificates of deposit. The company's lending portfolio includes residential mortgage lending, automobile financing, consumer financing, credit cards, overdraft facilities, commercial real estate lending, and commercial and industrial loans. It also offers investment products and services; and cash and liquidity management, foreign exchange, custody administration, and settlement services. In addition, the company provides personal and property/auto insurance products; letters of credit; and cash management, payroll, remote banking, money market, advisory, brokerage, trust, estate, company management, private banking, administered banking services, and fiduciary services. Further, it offers debit cards; automated teller machines; personal and business deposit, merchant acquiring, and mobile/online banking services. The company operates through offices in the Cayman Islands, Guernsey, Jersey, the United Kingdom, The Bahamas, Switzerland, Singapore, Mauritius, and Canada, as well as through four branch locations in Bermuda and three branch locations in the Cayman Islands. The Bank of N.T. Butterfield & Son Limited was founded in 1858 and is headquartered in Hamilton, Bermuda.

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