Financial Analysis: Banco De Chile (NYSE:BCH) versus Bank of East Asia (OTCMKTS:BKEAY)

Bank of East Asia (OTCMKTS:BKEAY) and Banco De Chile (NYSE:BCH) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Analyst Ratings

This is a summary of current ratings for Bank of East Asia and Banco De Chile, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of East Asia	1	1	0	0	1.50
Banco De Chile	2	3	0	0	1.60

Banco De Chile has a consensus price target of $40.00, indicating a potential downside of 0.12%. Given Banco De Chile’s stronger consensus rating and higher probable upside, analysts plainly believe Banco De Chile is more favorable than Bank of East Asia.

Insider and Institutional Ownership

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

Valuation and Earnings

This table compares Bank of East Asia 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
Bank of East Asia	$4.96 billion	0.92	$449.07 million	N/A	N/A
Banco De Chile	$3.89 billion	N/A	$1.31 billion	$2.79	14.35

Banco De Chile has lower revenue, but higher earnings than Bank of East Asia.

Profitability

This table compares Bank of East Asia and Banco De Chile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of East Asia	N/A	N/A	N/A
Banco De Chile	33.09%	23.94%	2.48%

Dividends

Bank of East Asia pays an annual dividend of $0.05 per share and has a dividend yield of 2.9%. Banco De Chile pays an annual dividend of $1.57 per share and has a dividend yield of 3.9%. Banco De Chile pays out 56.3% of its earnings in the form of a dividend.

Volatility and Risk

Bank of East Asia has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Banco De Chile has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.

Summary

Banco De Chile beats Bank of East Asia on 10 of the 12 factors compared between the two stocks.

About Bank of East Asia

The Bank of East Asia, Limited, together with its subsidiaries, provides various banking and related financial services. Its personal banking services include corporate, individual, savings, current, time deposit, and supreme accounts; and time deposits, foreign currency deposits, MAS services, and auto-payroll products, as well as safe deposit boxes and remittance services. The company also provides corporate banking services, such as SME loans and financing guarantee schemes; corporate and commercial financing products, including syndicated and construction loans, acquisition and structured financing, working capital financing, share financing and IPO-related loans, and commercial mortgages; trade finance services and expert trade solutions; factoring services; import and export trade finance; guarantee services; eTradeConnect that allows buyers and sellers to connect, transact, share information, and submit applications for financing through a single platform; cash management services; corporate wealth management products; foreign exchange and treasury products; and marine cargo, property, trade credit, employee compensation, life, savings, and endowment insurance plans. In addition, it offers private banking services comprising investment advisory services; investment solutions, such as unit trusts, linked deposits, currency trading and management, global equities and bonds investments, structured products, and options and derivatives; portfolio management services; securities and futures broking services; cyber banking, credit cards, and ATM; and various international services. The company operates outlets in Hong Kong, rest of Greater China, Singapore, Malaysia, the United Kingdom, and the United States. The Bank of East Asia, Limited was incorporated in 1918 and is headquartered in Central, Hong Kong.

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.