Banco Santander Chile (NYSE:BSAC) versus Bankinter (OTCMKTS:BKNIY) Financial Comparison

Bankinter (OTCMKTS:BKNIY) and Banco Santander Chile (NYSE:BSAC) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Bankinter and Banco Santander Chile, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bankinter	1	3	2	0	2.17
Banco Santander Chile	1	3	3	1	2.50

Banco Santander Chile has a consensus target price of $35.40, suggesting a potential upside of 5.54%. Given Banco Santander Chile’s stronger consensus rating and higher possible upside, analysts plainly believe Banco Santander Chile is more favorable than Bankinter.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bankinter	24.27%	18.20%	0.90%
Banco Santander Chile	24.95%	21.00%	1.54%

Valuation and Earnings

This table compares Bankinter and Banco Santander Chile”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bankinter	$5.27 billion	3.11	$1.23 billion	$1.46	12.49
Banco Santander Chile	$2,855.28 billion	0.01	$1.12 billion	$2.32	14.46

Bankinter has higher earnings, but lower revenue than Banco Santander Chile. Bankinter is trading at a lower price-to-earnings ratio than Banco Santander Chile, indicating that it is currently the more affordable of the two stocks.

Dividends

Bankinter pays an annual dividend of $0.44 per share and has a dividend yield of 2.4%. Banco Santander Chile pays an annual dividend of $1.09 per share and has a dividend yield of 3.2%. Bankinter pays out 30.1% of its earnings in the form of a dividend. Banco Santander Chile pays out 47.0% 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.

Institutional & Insider Ownership

6.4% of Banco Santander Chile shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Bankinter has a beta of -0.16, suggesting that its share price is 116% less volatile than the S&P 500. Comparatively, Banco Santander Chile has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Summary

Banco Santander Chile beats Bankinter on 13 of the 16 factors compared between the two stocks.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.

About Banco Santander Chile

Banco Santander-Chile, together with its subsidiaries, provides commercial and retail banking services in Chile. It operates through Retail Banking, Middle-Market, Corporate Investment Banking, and Corporate Activities segments. The company offers debit and credit cards, checking accounts, and savings products; consumer, automobile, commercial, mortgage, and government-guaranteed loans; and Chilean peso and foreign currency-denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines, as well as mortgage financing services. It also provides mutual fund management, insurance and securities brokerage, foreign exchange services, financial leasing, financial consulting and advisory, investment management, foreign trade, leasing, factoring, treasury, and transactional services, as well as specialized services to finance residential projects. In addition, the company offers short-term financing and fundraising, and brokerage services, as well as derivatives, securitization, and other products; and manages capital allocations. It serves individuals, small to middle-sized entities, companies, and large corporations, as well as universities, government entities, and local and regional governments. The company was incorporated in 1977 and is headquartered in Santiago, Chile. Banco Santander-Chile operates as a subsidiary of Banco Santander, S.A.