Banco Itau Chile Spon (NASDAQ:ITCLY) & Suruga Bank (OTCMKTS:SUGBY) Critical Comparison

Suruga Bank (OTCMKTS:SUGBY) and Banco Itau Chile Spon (NASDAQ:ITCLY) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Profitability

This table compares Suruga Bank and Banco Itau Chile Spon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suruga Bank	20.05%	6.24%	0.52%
Banco Itau Chile Spon	10.54%	10.65%	0.91%

Analyst Ratings

This is a breakdown of current recommendations for Suruga Bank and Banco Itau Chile Spon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suruga Bank	0	0	0	0	N/A
Banco Itau Chile Spon	0	0	0	0	N/A

Institutional & Insider Ownership

22.2% of Banco Itau Chile Spon shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Suruga Bank and Banco Itau Chile Spon”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suruga Bank	$633.45 million	2.25	$106.09 million	$5.24	13.78
Banco Itau Chile Spon	$3.99 billion	0.50	$423.68 million	$0.66	4.70

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

Dividends

Suruga Bank pays an annual dividend of $1.33 per share and has a dividend yield of 1.8%. Banco Itau Chile Spon pays an annual dividend of $0.17 per share and has a dividend yield of 5.5%. Suruga Bank pays out 25.4% of its earnings in the form of a dividend. Banco Itau Chile Spon pays out 25.8% 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.

Summary

Banco Itau Chile Spon beats Suruga Bank on 6 of the 11 factors compared between the two stocks.

About Suruga Bank

Suruga Bank Ltd. provides various banking and financial products and services to individuals and corporate customers in Japan. The company offers deposit products, such as time, ordinary, savings, foreign currency, and other deposits, as well as current and general accounts; card, housing, second house, startup, and business up term loans, as well as loans by purpose; credit and debit cards; overdrafts; and other financing products. It also provides investment trust, public bond, pension contribution, insurance, inheritance/trust, lottery, foreign currency, pay-easy, web direct, safe deposit box, external linkage, foreign remittance, fund management, e-combination, payment, nursing care/medical care/dispensing compensation receivable factoring, mortgage, and Internet and telephone banking services. In addition, the company offers staffing, money lending, guarantee, printing, leasing, and agency services. The company was incorporated in 1895 and is headquartered in Numazu, Japan.

About Banco Itau Chile Spon

Banco Ita? Chile provides banking services principally in Chile and Colombia. It provides wholesale and corporate banking; real estate and construction and retail, private, companies and personal banking services, as well as treasury and other financial services. Banco Ita? Chile, formerly known as Ita? Corpbanca, is based in Santiago, Chile.