Cape Bancorp (NASDAQ: CBNJ) and Banco De Chile (NYSE:BCH) are both financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Profitability

This table compares Cape Bancorp and Banco De Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cape Bancorp 13.12% 4.73% 0.50%
Banco De Chile 23.78% 19.01% 1.81%

Dividends

Banco De Chile pays an annual dividend of $2.12 per share and has a dividend yield of 2.4%. Cape Bancorp does not pay a dividend. Banco De Chile pays out 41.0% of its earnings in the form of a dividend. Banco De Chile has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cape Bancorp and Banco De Chile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cape Bancorp 0 0 0 0 N/A
Banco De Chile 0 2 0 0 2.00

Banco De Chile has a consensus target price of $84.00, suggesting a potential downside of 3.13%. Given Banco De Chile’s higher probable upside, analysts clearly believe Banco De Chile is more favorable than Cape Bancorp.

Earnings and Valuation

This table compares Cape Bancorp and Banco De Chile’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cape Bancorp N/A N/A N/A N/A N/A
Banco De Chile $2.24 billion 6.47 $863.86 million $5.17 16.77

Banco De Chile has higher revenue and earnings than Cape Bancorp.

Institutional and Insider Ownership

1.5% of Banco De Chile shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Banco De Chile beats Cape Bancorp on 8 of the 9 factors compared between the two stocks.

About Cape Bancorp

Cape Bancorp, Inc. (Cape Bancorp) is the holding company of Cape Bank (the Bank). The Bank focuses on providing deposit and loan products to retail customers and to small and mid-sized businesses from its fourteen full service branch offices, located in Atlantic and Cape May Counties, one drive-up teller/ATM operation in Atlantic County, three market development offices (MDOs) located in Burlington, Cape May and Atlantic Counties in New Jersey, and two MDOs in Pennsylvania servicing the five county Philadelphia market located in Radnor, Delaware County and in Philadelphia. It attracts deposits from the general public and uses those funds to originate a variety of loans, including commercial mortgages, commercial business loans, home equity loans and lines of credit (HELOC) and construction loans. Its retail and business banking deposit products include checking accounts, money market accounts, savings accounts, and certificates of deposit with terms ranging from 30 days to 60 months.

About Banco De Chile

Banco de Chile is a full service financial institution, which is engaged in providing credit and non-credit products and services in Chile. The Bank offers a range of banking services to its customers, ranging from individuals to corporations. The Bank’s segments include Retail, which focuses on individuals and small and medium-sized companies, where the product offering focuses on consumer loans, commercial loans, checking accounts, credit cards, credit lines and mortgage loans; Wholesale, which focuses on corporate clients and companies, where the product offering focuses on commercial loans, checking accounts and liquidity management services, debt instruments, foreign trade, derivative contracts and leases; Treasury, which includes the associated revenues to the management of the investment portfolio and the business of financial transactions and currency trading, and Subsidiaries, which corresponds to companies and corporations controlled by the Bank.

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