Head to Head Survey: Banco Santander Chile (NYSE:BSAC) & Trustmark (NASDAQ:TRMK)

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

Insider and Institutional Ownership

67.6% of Trustmark shares are held by institutional investors. Comparatively, 6.4% of Banco Santander Chile shares are held by institutional investors. 1.7% of Trustmark shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Trustmark pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Banco Santander Chile pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. Trustmark pays out 25.4% of its earnings in the form of a dividend. Banco Santander Chile pays out 42.0% 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. Trustmark has increased its dividend for 1 consecutive years.

Volatility and Risk

Trustmark has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Banco Santander Chile has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Trustmark	20.75%	10.69%	1.20%
Banco Santander Chile	27.04%	22.94%	1.70%

Analyst Ratings

This is a summary of current ratings and recommmendations for Trustmark and Banco Santander Chile, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trustmark	0	4	1	1	2.50
Banco Santander Chile	1	4	3	1	2.44

Trustmark presently has a consensus target price of $47.38, suggesting a potential upside of 7.16%. Banco Santander Chile has a consensus target price of $35.20, suggesting a potential upside of 9.28%. Given Banco Santander Chile’s higher probable upside, analysts plainly believe Banco Santander Chile is more favorable than Trustmark.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trustmark	$699.38 million	3.67	$224.13 million	$3.94	11.22
Banco Santander Chile	$4.50 billion	3.37	$1.12 billion	$2.62	12.29

Banco Santander Chile has higher revenue and earnings than Trustmark. Trustmark 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.

Summary

Banco Santander Chile beats Trustmark on 9 of the 17 factors compared between the two stocks.

About Trustmark

Trustmark Corporation operates as the bank holding company for Trustmark National Bank that provides banking and other financial solutions to individuals and corporate institutions in the United States. The company operates through three segments: General Banking, Wealth Management, and Insurance. It offers checking, savings, and money market accounts; certificates of deposits and individual retirement accounts; financing for commercial and industrial projects, income-producing commercial real estate, owner-occupied real estate, and construction and land development; and installment and real estate loans, and lines of credit, as well as treasury management services. The company also provides mortgage banking services, including construction financing, production of conventional and government-insured mortgages, and secondary marketing and mortgage servicing. In addition, it provides wealth management and trust services, such as administration of personal trusts and estates; management of investment accounts for individuals, employee benefit plans, and charitable foundations; and corporate trust and institutional custody, securities brokerage, financial and estate planning, retirement plan, and investment management services. Further, the company offers business insurance products and services for medical professionals, construction, manufacturing, hospitality, real estate, and group life and health plans; and life and health insurance, and personal line policies for individual customers. Trustmark Corporation was founded in 1889 and is headquartered in Jackson, Mississippi.

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.