Contrasting Banco De Chile (NYSE:BCH) & Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY)

Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) and Banco De Chile (NYSE:BCH) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Institutional and Insider Ownership

1.2% of Banco De Chile shares are held by institutional investors. 5.9% of Banco De Chile shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Svenska Handelsbanken Ab Publ pays an annual dividend of $0.58 per share and has a dividend yield of 8.2%. Banco De Chile pays an annual dividend of $1.65 per share and has a dividend yield of 4.4%. Svenska Handelsbanken Ab Publ pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Banco De Chile pays out 59.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Svenska Handelsbanken Ab Publ and Banco De Chile”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Svenska Handelsbanken Ab Publ	$21.75 billion	1.29	$2.42 billion	$0.71	9.94
Banco De Chile	$3.89 billion	4.81	$1.31 billion	$2.79	13.29

Svenska Handelsbanken Ab Publ has higher revenue and earnings than Banco De Chile. Svenska Handelsbanken Ab Publ 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.

Risk & Volatility

Svenska Handelsbanken Ab Publ has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Banco De Chile has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

Profitability

This table compares Svenska Handelsbanken Ab Publ and Banco De Chile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Svenska Handelsbanken Ab Publ	17.61%	14.18%	0.76%
Banco De Chile	33.09%	23.94%	2.48%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Svenska Handelsbanken Ab Publ and Banco De Chile, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Svenska Handelsbanken Ab Publ	3	3	0	0	1.50
Banco De Chile	1	4	0	0	1.80

Banco De Chile has a consensus price target of $40.00, suggesting a potential upside of 7.85%. Given Banco De Chile’s stronger consensus rating and higher possible upside, analysts plainly believe Banco De Chile is more favorable than Svenska Handelsbanken Ab Publ.

Summary

Banco De Chile beats Svenska Handelsbanken Ab Publ on 11 of the 15 factors compared between the two stocks.

About Svenska Handelsbanken Ab Publ

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.

About Banco De Chile

Banco de Chile, together with its subsidiaries, provides various banking services to customers in Chile. The company offers checking and debit accounts, debit and credit cards, and lines of credit; mortgage, consume, commercial, general purpose mortgage loans, and finance leases; and factoring services, mutual fund management, stock brokerage, foreign trade, payments and collections, insurance brokerage, including life and general insurance, as well as time deposits, savings instruments, and foreign currency services through branches under the Banco de Chile and Banco Edwards brands. It also provides working capital loans, corporate credit cards, foreign currency brokerage, leasing and long-term syndicated loans, advisory services for mergers acquisitions and debt restructuring; cash management services, including payment and collection services; and international fund transfer networks, current account and deposit products, fund administration, and treasury management. In addition, the company offers insurance brokerage, derivative contracts, transactional banking, financial risks coverage, representation and asset custody, investment banking and management, capital markets products, foreign exchange transactions; and advisory services for initial public offerings, capital increases, sales and purchases of blocks of shares, private capital placements, public share tenders, company valuations, bond issuances, and syndicated loans services. Further, it provides foreign exchange brokerage, forward contracts, interest rate swaps, repurchase agreements, and other investment products based on bonds, mortgage bonds and deposits. The company serves individuals, small and medium-sized companies, corporate clients, and large companies, real estate and construction, and high net worth family office customers. Banco de Chile was founded in 1893 and is headquartered in Santiago, Chile.