QCR (NASDAQ:QCRH) vs. Banco De Chile (NYSE:BCH) Critical Comparison

QCR (NASDAQ:QCRH) and Banco De Chile (NYSE:BCH) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for QCR and Banco De Chile, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QCR	0	2	4	0	2.67
Banco De Chile	1	4	0	0	1.80

QCR currently has a consensus target price of $108.75, indicating a potential upside of 6.69%. Banco De Chile has a consensus target price of $40.00, indicating a potential downside of 4.37%. Given QCR’s stronger consensus rating and higher probable upside, equities analysts plainly believe QCR is more favorable than Banco De Chile.

Dividends

QCR pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Banco De Chile pays an annual dividend of $1.65 per share and has a dividend yield of 3.9%. QCR pays out 4.7% of its earnings in the form of a dividend. Banco De Chile pays out 62.5% 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.

Insider and Institutional Ownership

70.0% of QCR shares are held by institutional investors. Comparatively, 1.2% of Banco De Chile shares are held by institutional investors. 3.2% of QCR shares are held by insiders. Comparatively, 5.9% of Banco De Chile shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QCR	22.86%	12.87%	1.50%
Banco De Chile	31.01%	21.10%	2.26%

Volatility & Risk

QCR has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Banco De Chile has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.

Earnings & Valuation

This table compares QCR and Banco De Chile”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QCR	$603.75 million	2.77	$127.19 million	$8.46	12.05
Banco De Chile	$3.89 billion	5.43	$1.30 billion	$2.64	15.84

Banco De Chile has higher revenue and earnings than QCR. QCR 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

Banco De Chile beats QCR on 9 of the 16 factors compared between the two stocks.

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.

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.