Reviewing Banco de Chile (BCH)’s and Itau Unibanco Holding S.A. (NYSE:ITUB)’s results

Banco de Chile (NYSE:BCH) and Itau Unibanco Holding S.A. (NYSE:ITUB) have been rivals in the Foreign Regional Banks for quite some time. Below is a review of each business including various aspects such as analyst recommendations, profitability, risk, dividends, earnings and valuation, institutional ownership.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco de Chile N/A 0.00 N/A 0.56 50.07
Itau Unibanco Holding S.A. N/A 0.00 N/A 0.63 14.10

Table 1 shows gross revenue, earnings per share (EPS) and valuation of the two companies. Presently more expensive of the two stocks is the business with a higher P/E ratio. Banco de Chile’s shares have been trading at higher P/E ratio which means it is presently more expensive than Itau Unibanco Holding S.A.

Profitability

Table 2 provides Banco de Chile and Itau Unibanco Holding S.A.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco de Chile 0.00% 18.3% 1.7%
Itau Unibanco Holding S.A. 0.00% 18.6% 1.6%

Volatility & Risk

Banco de Chile has a 0.52 beta, while its volatility is 48.00% which is less volatile than S&P 500. Itau Unibanco Holding S.A. on the other hand, has 1.23 beta which makes it 23.00% more volatile compared to S&P 500.

Dividends

On the other side Itau Unibanco Holding S.A. pays an annual dividend of $0.38 per share. It’s dividend yield is 3.86%. No dividend is paid out for Banco de Chile.

Analyst Ratings

The following table given below contains the ratings and recommendations for Banco de Chile and Itau Unibanco Holding S.A.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Banco de Chile 0 0 0 0.00
Itau Unibanco Holding S.A. 0 1 0 2.00

Institutional & Insider Ownership

The shares of both Banco de Chile and Itau Unibanco Holding S.A. are owned by institutional investors at 1.4% and 27% respectively. Insiders held 87.9% of Banco de Chile shares. Comparatively, insiders own roughly 52.1% of Itau Unibanco Holding S.A.’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Banco de Chile -3.6% -3.38% -2.09% -9.57% 6.84% -10.75%
Itau Unibanco Holding S.A. -5.57% -2.9% 25.98% 24.38% 9.64% 7.65%

For the past year Banco de Chile has -10.75% weaker performance while Itau Unibanco Holding S.A. has 7.65% stronger performance.

Summary

Itau Unibanco Holding S.A. beats Banco de Chile on 5 of the 8 factors.

Itaú Unibanco Holding S.A. provides a range of financial products and services to individuals and corporate clients in Brazil and internationally. The company operates in three segments: Retail Banking, Wholesale Banking, and Activities with the Market + Corporation. It accepts demand, savings, and time deposits; and offers payroll, mortgage, personal, and vehicle loans, as well as credit cards. The company also provides investment banking, cash management, consortium, custody and bookkeeping, asset management, and private banking services, as well as electronic payment means services. In addition, it offers property, casualty, and life insurance products; reinsurance products; pension plans; consumer finance credit; and capitalization, leasing, and brokerage services. As of December 31, 2016, Itaú Unibanco Holding S.A. operated a network of 5,103 branches and client service branches (CSBs), which included 3,653 branches in Brazil; 135 digital branches; 766 CSBs in Brazil; and 549 branches and CSBs in Latin America, as well as operated 46,175 automated teller machines. 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. Itaú Unibanco Holding S.A. was founded in 1944 and is headquartered in São Paulo, Brazil.