Banco De Chile (NYSE: BCH) and Hanmi Financial Corp (NASDAQ:HAFCD) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Dividends

Banco De Chile pays an annual dividend of $2.12 per share and has a dividend yield of 2.3%. Hanmi Financial Corp 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 increased its dividend for 5 consecutive years.

Valuation & Earnings

This table compares Banco De Chile and Hanmi Financial Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Banco De Chile $2.31 billion 6.58 $863.86 million $5.17 17.60
Hanmi Financial Corp N/A N/A N/A N/A N/A

Banco De Chile has higher revenue and earnings than Hanmi Financial Corp.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Banco De Chile and Hanmi Financial Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco De Chile 0 3 1 0 2.25
Hanmi Financial Corp 0 0 0 0 N/A

Banco De Chile presently has a consensus target price of $84.00, indicating a potential downside of 7.72%. Given Banco De Chile’s higher probable upside, research analysts clearly believe Banco De Chile is more favorable than Hanmi Financial Corp.

Insider and Institutional Ownership

1.6% of Banco De Chile shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Banco De Chile and Hanmi Financial Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco De Chile 23.78% 19.01% 1.81%
Hanmi Financial Corp 27.34% 10.57% 1.19%

Summary

Banco De Chile beats Hanmi Financial Corp on 8 of the 10 factors compared between the two stocks.

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.

Hanmi Financial Corp Company Profile

Hanmi Financial Corporation is the holding company for Hanmi Bank (the Bank). The Bank is a community bank conducting general business banking, with its primary market encompassing the Korean-American community, as well as other ethnic communities across California, Colorado, Georgia, Illinois, New York, Texas, Virginia and Washington. The Bank’s client base reflects the multi-ethnic composition of these communities. The Bank maintains a branch network of full-service branch offices in California, Illinois, New Jersey, New York, Texas and Virginia, and loan production offices in California, Colorado, Texas, Virginia and Washington State. Its lending activities include real estate loans (commercial property, construction and residential property), commercial and industrial loans (commercial term loans, commercial lines of credit and international), and consumer loans and small business administration (SBA) loans. Its revenues are derived from interest and fees on its loans.

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