Analyzing International Bancshares (NASDAQ:IBOC) & Banco Santander Chile (NYSE:BSAC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International Bancshares	38.83%	12.67%	2.47%
Banco Santander Chile	27.04%	22.94%	1.70%

Insider and Institutional Ownership

65.9% of International Bancshares shares are held by institutional investors. Comparatively, 6.4% of Banco Santander Chile shares are held by institutional investors. 13.1% of International Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

International Bancshares pays an annual dividend of $1.46 per share and has a dividend yield of 2.2%. Banco Santander Chile pays an annual dividend of $1.09 per share and has a dividend yield of 3.4%. International Bancshares pays out 22.0% of its earnings in the form of a dividend. Banco Santander Chile pays out 41.6% 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. International Bancshares has raised its dividend for 16 consecutive years.

Valuation and Earnings

This table compares International Bancshares and Banco Santander Chile”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$1.06 billion	3.95	$412.29 million	$6.63	10.13
Banco Santander Chile	$2,954.73 billion	0.01	$1.12 billion	$2.62	12.13

Banco Santander Chile has higher revenue and earnings than International Bancshares. International Bancshares 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for International Bancshares and Banco Santander Chile, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	1	0	3.00
Banco Santander Chile	1	4	3	1	2.44

International Bancshares presently has a consensus target price of $85.00, indicating a potential upside of 26.61%. Banco Santander Chile has a consensus target price of $35.20, indicating a potential upside of 10.79%. Given International Bancshares’ stronger consensus rating and higher probable upside, equities analysts plainly believe International Bancshares is more favorable than Banco Santander Chile.

Volatility & Risk

International Bancshares has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Banco Santander Chile has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Summary

International Bancshares beats Banco Santander Chile on 11 of the 18 factors compared between the two stocks.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.

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.