Banco Santander Chile (NYSE:BSAC – Get Free Report) and United Security Bancshares (NASDAQ:UBFO – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Valuation and Earnings
This table compares Banco Santander Chile and United Security Bancshares”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banco Santander Chile | $4.50 billion | 3.68 | $1.12 billion | $2.62 | 13.41 |
| United Security Bancshares | $53.51 million | 3.39 | $12.29 million | $0.71 | 14.80 |
Profitability
This table compares Banco Santander Chile and United Security Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banco Santander Chile | 27.04% | 22.94% | 1.70% |
| United Security Bancshares | 18.65% | 9.03% | 1.01% |
Insider and Institutional Ownership
6.4% of Banco Santander Chile shares are held by institutional investors. Comparatively, 30.9% of United Security Bancshares shares are held by institutional investors. 22.1% of United Security Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Dividends
Banco Santander Chile pays an annual dividend of $1.10 per share and has a dividend yield of 3.1%. United Security Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 4.6%. Banco Santander Chile pays out 42.0% of its earnings in the form of a dividend. United Security Bancshares pays out 67.6% 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. United Security Bancshares has increased its dividend for 2 consecutive years. United Security Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Banco Santander Chile has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, United Security Bancshares has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Banco Santander Chile and United Security Bancshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banco Santander Chile | 1 | 4 | 3 | 1 | 2.44 |
| United Security Bancshares | 0 | 0 | 1 | 0 | 3.00 |
Banco Santander Chile currently has a consensus target price of $35.40, suggesting a potential upside of 0.79%. Given Banco Santander Chile’s higher possible upside, equities research analysts clearly believe Banco Santander Chile is more favorable than United Security Bancshares.
Summary
Banco Santander Chile beats United Security Bancshares on 12 of the 18 factors compared between the two stocks.
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.
About United Security Bancshares
United Security Bancshares operates as the bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to the business and professional community, and individuals in California. The company accepts various deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit. It also provides real estate mortgage, commercial and industrial, real estate construction and development, and consumer loans, as well as agricultural, installment, and student loans. In addition, the company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier's check, cash management, and foreign draft services, as well as interactive teller machines; and person-to-person and bank-to-bank transfers for consumer customers. United Security Bancshares was founded in 1987 and is headquartered in Fresno, California.
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