HANG SENG BK LT/S (HSNGY) vs. Banco de Chile (BCH) Financial Comparison

Banco de Chile (NYSE:BCH) and HANG SENG BK LT/S (OTCMKTS:HSNGY) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Valuation and Earnings

This table compares Banco de Chile and HANG SENG BK LT/S’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco de Chile $4.08 billion 3.88 $951.79 million $1.84 17.04
HANG SENG BK LT/S $10.17 billion 4.31 $2.57 billion $1.32 17.36

HANG SENG BK LT/S has higher revenue and earnings than Banco de Chile. Banco de Chile is trading at a lower price-to-earnings ratio than HANG SENG BK LT/S, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Banco de Chile and HANG SENG BK LT/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco de Chile 24.27% 17.65% 1.70%
HANG SENG BK LT/S N/A N/A N/A

Risk & Volatility

Banco de Chile has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, HANG SENG BK LT/S has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Dividends

Banco de Chile pays an annual dividend of $0.77 per share and has a dividend yield of 2.5%. HANG SENG BK LT/S pays an annual dividend of $0.58 per share and has a dividend yield of 2.5%. Banco de Chile pays out 41.8% of its earnings in the form of a dividend. HANG SENG BK LT/S pays out 43.9% 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. Banco de Chile has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for Banco de Chile and HANG SENG BK LT/S, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco de Chile 1 1 0 0 1.50
HANG SENG BK LT/S 0 1 0 0 2.00

Banco de Chile currently has a consensus target price of $76.00, suggesting a potential upside of 142.35%. Given Banco de Chile’s higher possible upside, equities research analysts plainly believe Banco de Chile is more favorable than HANG SENG BK LT/S.

Institutional and Insider Ownership

0.5% of Banco de Chile shares are owned by institutional investors. Comparatively, 0.0% of HANG SENG BK LT/S shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Banco de Chile beats HANG SENG BK LT/S on 8 of the 15 factors compared between the two stocks.

Banco de Chile Company Profile

Banco de Chile, together with its subsidiaries, provides banking and financial products and services to customers in Chile. The company operates through four segments: Retail, Wholesale, Treasury and Money Market Operations, and Subsidiaries. It offers deposit products, such as checking accounts, current accounts, demand deposits, demand accounts, saving accounts, and time deposits; credit cards; installment loans; credit lines; and residential mortgage loans, as well as short and long term financing. The company also provides commercial loans, such as factoring and leasing; trade finance services; liquidity management services, debt instruments, foreign trade, and derivative contracts; capital market services; cash management and non-lending services that include payroll, payment, and collection services, as well as treasury, financial advisory, and risk management products. In addition, it offers financial services, such as securities brokerage, mutual funds management, investment banking, insurance brokerage, and securitization services. The company serves customers in individuals; small and medium enterprises; and wholesale customers. As of December 31, 2017, it operated through 399 branches comprising 253 branches under the Banco de Chile brand name, 41 branches under the Banco Edwards Citi brand name, and 105 branches under the Banco CrediChile brand name, as well as 1,464 automatic teller machines. Banco de Chile was founded in 1855 and is headquartered in Santiago, Chile.

HANG SENG BK LT/S Company Profile

Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprise, and institutional customers in Hong Kong, Mainland China, and internationally. It operates through four segments: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Other. The company offers personal banking services, including current and savings accounts, mortgages and personal loans, credit cards, and insurance and wealth management services, as well as consumer lending services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment, and corporate wealth management services, as well as general banking, interest rate, money market, structured, derivative products, etc. In addition, the company offers trustee, nominee, retirement benefit and life assurance, fund management, stock broking, and property management services, as well as engages in the compilation and dissemination of the Hang Seng share index. As of March 12, 2018, it operated 270 service outlets in Hong Kong; branches in Macau and Singapore; and a representative office in Taipei. Hang Seng Bank Limited, through its subsidiary, Hang Seng Bank (China) Limited, operates a mainland China network with outlets in the Pearl River delta, the Yangtze River delta, the Bohai Rim region, and Midwest China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited is a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.

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