Boc Hong Kong (BHKLY) versus Banco de Chile (BCH) Critical Contrast

Boc Hong Kong (OTCMKTS:BHKLY) and Banco de Chile (NYSE:BCH) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Dividends

Boc Hong Kong pays an annual dividend of $2.74 per share and has a dividend yield of 3.3%. Banco de Chile pays an annual dividend of $0.79 per share and has a dividend yield of 2.8%. Banco de Chile pays out 46.5% of its earnings in the form of a dividend. Banco de Chile has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Boc Hong Kong and Banco de Chile, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boc Hong Kong 0 0 0 1 4.00
Banco de Chile 1 1 0 0 1.50

Banco de Chile has a consensus price target of $76.00, suggesting a potential upside of 165.27%. Given Banco de Chile’s higher possible upside, analysts plainly believe Banco de Chile is more favorable than Boc Hong Kong.

Institutional & Insider Ownership

1.3% of Banco de Chile shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Boc Hong Kong and Banco de Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boc Hong Kong N/A N/A N/A
Banco de Chile 22.99% 16.71% 1.58%

Volatility & Risk

Boc Hong Kong has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Banco de Chile has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Valuation & Earnings

This table compares Boc Hong Kong and Banco de Chile’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boc Hong Kong $10.08 billion N/A $3.99 billion N/A N/A
Banco de Chile $3.61 billion 4.01 $870.29 million $1.70 16.85

Boc Hong Kong has higher revenue and earnings than Banco de Chile.

Summary

Boc Hong Kong beats Banco de Chile on 7 of the 13 factors compared between the two stocks.

Boc Hong Kong Company Profile

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, Mainland China, and internationally. It operates through four segments: Personal Banking, Corporate Banking, Treasury, and Insurance. The company offers savings, current, and time deposit accounts; mortgage plans; overdrafts; personal loans; personal life, medical and accident, travel and leisure, business protection, home, domestic helper, motor, and golfer insurance products; wealth management services; and Internet, phone, and mobile banking services. It also provides cross-border services for corporate customers; business banking, trade finance and services, investment, treasury, corporate collection and payment, e-commerce, and card services; small business, asset-pledge, machinery and equipment financing, and project financing and syndicated loans; and payroll, custody, and cash management services; and business comprehensive, property, liability, group, and retailer comprehensive insurance plans. In addition, it provides investment products and services, including securities, foreign exchange, fund, precious metals and FX margin, bonds, currency linked investment, structured products, bonds, and savings plans. The company operates approximately 200 branches, 270 automated banking centers, and approximately 1,000 self-service machines. BOC Hong Kong (Holdings) Limited was founded in 1917 and is based in Central, Hong Kong. The company is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. BOC Hong Kong (Holdings) Limited is a subsidiary of BOC Hong Kong (BVI) Limited.

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.

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