Itau Unibanco (NYSE:ITUB) vs. Chiba Bank (OTCMKTS:CHBAY) Financial Analysis

Itau Unibanco (NYSE:ITUB) and Chiba Bank (OTCMKTS:CHBAY) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Risk and Volatility

Itau Unibanco has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Chiba Bank has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500.

Profitability

This table compares Itau Unibanco and Chiba Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Itau Unibanco	27.27%	21.27%	1.54%
Chiba Bank	21.13%	7.81%	0.45%

Dividends

Itau Unibanco pays an annual dividend of $0.03 per share and has a dividend yield of 0.4%. Chiba Bank pays an annual dividend of $0.54 per share and has a dividend yield of 0.7%. Itau Unibanco pays out 4.1% of its earnings in the form of a dividend. Chiba Bank pays out 12.2% 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Itau Unibanco and Chiba Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Itau Unibanco	0	2	2	0	2.50
Chiba Bank	0	1	0	0	2.00

Itau Unibanco presently has a consensus target price of $10.00, suggesting a potential upside of 20.55%. Given Itau Unibanco’s stronger consensus rating and higher probable upside, equities analysts clearly believe Itau Unibanco is more favorable than Chiba Bank.

Earnings & Valuation

This table compares Itau Unibanco and Chiba Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Itau Unibanco	$30.04 billion	3.06	$8.03 billion	$0.73	11.36
Chiba Bank	$2.96 billion	3.97	$620.82 million	$4.44	17.05

Itau Unibanco has higher revenue and earnings than Chiba Bank. Itau Unibanco is trading at a lower price-to-earnings ratio than Chiba Bank, indicating that it is currently the more affordable of the two stocks.

Summary

Itau Unibanco beats Chiba Bank on 10 of the 14 factors compared between the two stocks.

About Itau Unibanco

Itaú Unibanco Holding S.A. offers a range of financial products and services to individuals and corporate customers in Brazil and internationally. The company operates through three segments: Retail Banking, Wholesale Banking, and Activities with the Market + Corporation. It offers current account; loans; credit and debit cards; investment and commercial banking services; real estate lending services; financing and investment services; economic, financial and brokerage advisory; and leasing and foreign exchange services. The company also provides property and casualty insurance products covering loss, damage, or liabilities for assets or persons, as well as life insurance products covering death and personal accident. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and small companies, as well as middle-market companies and high net worth clients. The company was formerly known as Itaú Unibanco Banco Múltiplo S.A. and changed its name to Itaú Unibanco Holding S.A. in April 2009. The company was incorporated in 1924 and is headquartered in São Paulo, Brazil. Itaú Unibanco Holding S.A. operates as a subsidiary of IUPAR – Itaú Unibanco Participações S.A.

About Chiba Bank

The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.