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

Institutional and Insider Ownership

77.0% of Southwest Bancorp shares are owned by institutional investors. Comparatively, 1.5% of Banco De Chile shares are owned by institutional investors. 6.4% of Southwest Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Southwest Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. Banco De Chile pays an annual dividend of $2.12 per share and has a dividend yield of 2.4%. Southwest Bancorp pays out 27.8% of its earnings in the form of a dividend. Banco De Chile pays out 41.0% 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. Southwest Bancorp has raised its dividend for 5 consecutive years.

Valuation & Earnings

This table compares Southwest Bancorp and Banco De Chile’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Southwest Bancorp $96.35 million 4.83 $21.49 million $1.15 21.65
Banco De Chile $2.24 billion 6.47 $863.86 million $5.17 16.77

Banco De Chile has higher revenue and earnings than Southwest Bancorp. Banco De Chile is trading at a lower price-to-earnings ratio than Southwest Bancorp, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Southwest Bancorp has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Banco De Chile has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Southwest Bancorp and Banco De Chile, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southwest Bancorp 0 5 1 0 2.17
Banco De Chile 0 2 0 0 2.00

Southwest Bancorp currently has a consensus price target of $25.00, suggesting a potential upside of 0.40%. Banco De Chile has a consensus price target of $84.00, suggesting a potential downside of 3.13%. Given Southwest Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Southwest Bancorp is more favorable than Banco De Chile.

Profitability

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

Net Margins Return on Equity Return on Assets
Southwest Bancorp 19.38% 7.44% 0.86%
Banco De Chile 23.78% 19.01% 1.81%

Summary

Southwest Bancorp beats Banco De Chile on 9 of the 17 factors compared between the two stocks.

Southwest Bancorp Company Profile

Southwest Bancorp, Inc. is a financial holding company. The Company operates in four segments: Oklahoma Banking, Texas Banking, Kansas Banking and Other Operations. The Oklahoma Banking segment provides deposit and lending services and consists of residential mortgage lending services to customers. The Texas Banking segment and the Kansas Banking segment provide deposit and lending services. Other Operations segment includes funds management unit and corporate investments. The Oklahoma Banking segment includes the Stillwater division, the Central Oklahoma division based in Oklahoma City, the Tulsa division, and the Colorado division based in Denver; Texas Banking segment includes the Dallas division, the Fort Worth division, the Austin division and the San Antonio division, and Kansas Banking segment includes the Wichita division and the Hutchinson division. The Stillwater division, Hutchinson division and Denver division serve their respective markets as full-service community banks.

Banco De Chile Company Profile

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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