Marlin Business Services (NASDAQ: MRLN) and Banco Santander-Chile (NYSE:BSAC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.
This is a summary of current recommendations and price targets for Marlin Business Services and Banco Santander-Chile, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marlin Business Services||0||0||2||0||3.00|
Marlin Business Services pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. Banco Santander-Chile pays an annual dividend of $0.85 per share and has a dividend yield of 2.6%. Marlin Business Services pays out 27.9% of its earnings in the form of a dividend. Banco Santander-Chile pays out 45.7% 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.
Valuation and Earnings
This table compares Marlin Business Services and Banco Santander-Chile’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Marlin Business Services||$119.05 million||2.72||$25.29 million||$2.01||12.96|
|Banco Santander-Chile||$4.14 billion||3.71||$915.64 million||$1.86||17.52|
Banco Santander-Chile has higher revenue and earnings than Marlin Business Services. Marlin Business Services is trading at a lower price-to-earnings ratio than Banco Santander-Chile, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Marlin Business Services has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Banco Santander-Chile has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
This table compares Marlin Business Services and Banco Santander-Chile’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marlin Business Services||22.74%||11.48%||1.92%|
Insider & Institutional Ownership
79.5% of Marlin Business Services shares are held by institutional investors. Comparatively, 16.8% of Banco Santander-Chile shares are held by institutional investors. 6.9% of Marlin Business Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Marlin Business Services beats Banco Santander-Chile on 10 of the 16 factors compared between the two stocks.
Marlin Business Services Company Profile
Marlin Business Services Corp. is a bank holding company and a financial holding company. The Company is a provider of credit products and services to small businesses. The Company provides products and services to its customers, which include loans and leases for the acquisition of commercial equipment, working capital loans, and insurance products. The Company accesses its end user customers primarily through origination sources consisting of independent commercial equipment dealers, various national account programs, through direct solicitation of its end user customers, and through relationships with select lease and loan brokers. The Company uses both a telephonic direct sales model and, for strategic larger accounts, outside sales executives to market to its origination sources and end user customers. Through these origination sources, the Company accesses end user customers while also helping its origination sources obtain financing for their customers.
Banco Santander-Chile Company Profile
Banco Santander-Chile (the Bank), formerly Banco Santander Chile, is a Chilean bank. The Bank’s segments include Retail banking, Middle-market, Global Corporate Banking and Corporate Activities (Other). The Retail Banking segment consists of individuals and small to middle-sized entities (SMEs). The Middle-market segment serves companies and large corporations. The Global Corporate Banking segment consists of foreign and domestic multinational companies. The Corporate Activities segment includes its Financial Management Division, which develops global management functions. It provides a range of commercial and retail banking services to its customers, including Chilean peso and foreign currency denominated loans to finance a range of commercial transactions, trade, foreign currency forward contracts and credit lines and a range of retail banking services, including mortgage financing. In addition to its traditional banking operations, the Bank offers a range of financial services.
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