Banco Santander Chile (NYSE:BSAC) & Old Second Bancorp (NASDAQ:OSBC) Financial Contrast

Banco Santander Chile (NYSE:BSAC) and Old Second Bancorp (NASDAQ:OSBC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Dividends

Banco Santander Chile pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. Old Second Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Banco Santander Chile pays out 42.0% of its earnings in the form of a dividend. Old Second Bancorp pays out 16.1% 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. Old Second Bancorp has raised its dividend for 1 consecutive years.

Volatility & Risk

Banco Santander Chile has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Old Second Bancorp has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Banco Santander Chile and Old Second Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Santander Chile	1	4	3	1	2.44
Old Second Bancorp	0	2	4	1	2.86

Banco Santander Chile currently has a consensus target price of $35.20, indicating a potential upside of 9.28%. Old Second Bancorp has a consensus target price of $26.20, indicating a potential upside of 6.46%. Given Banco Santander Chile’s higher probable upside, analysts clearly believe Banco Santander Chile is more favorable than Old Second Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banco Santander Chile	27.04%	22.94%	1.70%
Old Second Bancorp	20.22%	12.79%	1.65%

Institutional & Insider Ownership

6.4% of Banco Santander Chile shares are held by institutional investors. Comparatively, 67.8% of Old Second Bancorp shares are held by institutional investors. 3.6% of Old Second Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Banco Santander Chile and Old Second Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Santander Chile	$4.50 billion	3.37	$1.12 billion	$2.62	12.29
Old Second Bancorp	$401.54 million	3.12	$80.31 million	$1.74	14.14

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

Summary

Banco Santander Chile beats Old Second Bancorp on 9 of the 17 factors compared between the two stocks.

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.

About Old Second Bancorp

Old Second Bancorp, Inc. operates as the bank holding company for Old Second National Bank that provides community banking services. It offers demand, NOW, money market, savings, time deposit, individual retirement, and checking accounts, as well as certificates of deposit accounts. The company also provides commercial loans; lease financing receivables; commercial real estate loans; construction loans; residential real estate loans, such as residential first mortgage and second mortgage loans; home equity line of credit; consumer loans, including motor vehicle, home improvement, and signature loans; installment and agricultural loans; residential mortgages; and overdraft checking. In addition, it offers safe deposit services; trust and wealth management services; and money orders, cashier’s checks, foreign currency, direct deposits, discount brokerage, debit and credit cards, and other services, as well as acquires the U.S. treasury notes and bonds. Further, the company provides online and mobile banking; corporate cash management products, including remote and mobile deposits capture, investment sweep accounts, zero balance accounts, automated tax payments, automatic teller machines access, telephone banking, lockbox accounts, automated clearing house transactions, account reconciliation, controlled disbursement, detail and general information reporting, foreign and domestic wire transfers, and vault services for currency and coin; and investment, agency, and custodial services for individual, corporate, and not-for-profit clients. Old Second Bancorp, Inc. was incorporated in 1981 and is headquartered in Aurora, Illinois.