Financial Survey: Banco Itaú Chile (ITCL) vs. Its Rivals

Banco Itaú Chile (NYSE:ITCL – Get Rating) is one of 70 publicly-traded companies in the “Commercial banks, not elsewhere classified” industry, but how does it weigh in compared to its peers? We will compare Banco Itaú Chile to similar companies based on the strength of its earnings, profitability, dividends, analyst recommendations, risk, institutional ownership and valuation.

Risk and Volatility

Banco Itaú Chile has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Banco Itaú Chile’s peers have a beta of 0.94, indicating that their average share price is 6% less volatile than the S&P 500.

Earnings and Valuation

This table compares Banco Itaú Chile and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Banco Itaú Chile	$2.94 billion	$487.62 million	4.97
Banco Itaú Chile Competitors	$13.58 billion	$3.07 billion	9.23

Banco Itaú Chile’s peers have higher revenue and earnings than Banco Itaú Chile. Banco Itaú Chile is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

0.2% of Banco Itaú Chile shares are held by institutional investors. Comparatively, 24.6% of shares of all “Commercial banks, not elsewhere classified” companies are held by institutional investors. 8.0% of shares of all “Commercial banks, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Banco Itaú Chile and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Itaú Chile	0	0	0	0	N/A
Banco Itaú Chile Competitors	630	2239	2270	60	2.34

As a group, “Commercial banks, not elsewhere classified” companies have a potential upside of 84.86%. Given Banco Itaú Chile’s peers higher possible upside, analysts clearly believe Banco Itaú Chile has less favorable growth aspects than its peers.

Profitability

This table compares Banco Itaú Chile and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Itaú Chile	11.23%	13.12%	1.06%
Banco Itaú Chile Competitors	18.75%	12.00%	0.98%

Dividends

Banco Itaú Chile pays an annual dividend of $0.17 per share and has a dividend yield of 4.9%. Banco Itaú Chile pays out 24.3% of its earnings in the form of a dividend. As a group, “Commercial banks, not elsewhere classified” companies pay a dividend yield of 2.5% and pay out 17.0% of their earnings in the form of a dividend.

Summary

Banco Itaú Chile peers beat Banco Itaú Chile on 8 of the 12 factors compared.

About Banco Itaú Chile

(Get Rating)

Banco Itau Chile engages in the provision of banking and financial services. It specializes in banking products such as financing, leasing, loans, insurance and credit cards. It operates through the following geographical segments: Chile and Colombia. The Chile segment consists of commercial and corporate banking, real estate and construction, large companies, retail banking, personal banking, small business, retail companies, Banco Condell consumer banking, international and treasury and other financial services. The Colombia segment offers commercial and retail banking and treasury and international business operations. The company was founded in 1871 and is headquartered in Las Condes, Chile.