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

Dividends

Banco De Chile pays an annual dividend of $2.12 per share and has a dividend yield of 2.6%. County Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Banco De Chile pays out 41.4% of its earnings in the form of a dividend. County Bancorp pays out 14.2% 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. Banco De Chile has raised its dividend for 5 consecutive years. Banco De Chile is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Banco De Chile 24.17% 18.18% 1.74%
County Bancorp 19.80% 9.24% 0.92%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco De Chile $3.62 billion 3.83 $857.77 million $5.12 16.22
County Bancorp $54.29 million 4.08 $10.69 million $1.69 19.64

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco De Chile 0 3 1 0 2.25
County Bancorp 0 1 1 0 2.50

Banco De Chile presently has a consensus price target of $84.00, indicating a potential upside of 1.19%. County Bancorp has a consensus price target of $32.00, indicating a potential downside of 3.59%. Given Banco De Chile’s higher probable upside, research analysts plainly believe Banco De Chile is more favorable than County Bancorp.

Risk and Volatility

Banco De Chile has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, County Bancorp has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Institutional & Insider Ownership

1.4% of Banco De Chile shares are held by institutional investors. Comparatively, 27.6% of County Bancorp shares are held by institutional investors. 26.3% of County Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Banco De Chile beats County Bancorp on 9 of the 16 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.

County Bancorp Company Profile

County Bancorp, Inc. is a bank holding company. The Company’s primary activities consist of holding the stock of its subsidiary bank, Investors Community Bank (the Bank), and providing banking and related business activities through the Bank and its other subsidiaries. It operates in the community banking segment. The Bank is an independent community bank offering financial services focusing on the needs of agricultural businesses, with a primary focus on dairy-related lending with lending relationships in over 60 Wisconsin counties. It also serves business and retail customers throughout Wisconsin, but is focused on northeastern and central Wisconsin. Its customers are served from its service branches in Manitowoc and Stevens Point, and its loan production offices located in Darlington, Eau Claire, Fond du Lac, and Sheboygan. Its subsidiaries include Investors Insurance Services, LLC, County Bancorp Statutory Trust II, County Bancorp Statutory Trust III and County Acquisition LLC.

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