Suruga Bank (OTCMKTS:SUGBY) & Banco Santander-Chile (NYSE:BSAC) Critical Analysis

Suruga Bank (OTCMKTS:SUGBYGet Rating) and Banco Santander-Chile (NYSE:BSACGet Rating) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Dividends

Suruga Bank pays an annual dividend of $0.66 per share and has a dividend yield of 2.5%. Banco Santander-Chile pays an annual dividend of $0.85 per share and has a dividend yield of 5.6%. Suruga Bank pays out 20.1% of its earnings in the form of a dividend. Banco Santander-Chile pays out 36.3% 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Suruga Bank and Banco Santander-Chile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Suruga Bank 0 1 0 0 2.00
Banco Santander-Chile 0 6 0 0 2.00

Banco Santander-Chile has a consensus target price of $20.40, suggesting a potential upside of 34.56%. Given Banco Santander-Chile’s higher probable upside, analysts plainly believe Banco Santander-Chile is more favorable than Suruga Bank.

Volatility & Risk

Suruga Bank has a beta of -0.13, meaning that its share price is 113% less volatile than the S&P 500. Comparatively, Banco Santander-Chile has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Valuation & Earnings

This table compares Suruga Bank 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
Suruga Bank $819.44 million 0.61 $70.83 million $3.28 8.14
Banco Santander-Chile $3.83 billion 1.86 $1.10 billion $2.34 6.48

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

Insider & Institutional Ownership

9.5% of Banco Santander-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.

Profitability

This table compares Suruga Bank and Banco Santander-Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Suruga Bank 9.26% 3.56% 0.28%
Banco Santander-Chile 22.60% 21.63% 1.28%

Summary

Banco Santander-Chile beats Suruga Bank on 10 of the 13 factors compared between the two stocks.

About Suruga Bank

(Get Rating)

Suruga Bank Ltd. provides various banking and financial products and services to individuals and corporate customers in Japan. The company offers deposit products, such as time, ordinary, savings, foreign currency, and other deposits, as well as current and general accounts; card, housing, second house, resort, startup, project assistance, and business up term loans, as well as loans by purpose; credit and debit cards; and overdrafts and other financing products. It also provides investment trust, public bond, pension contribution, insurance, inheritance/trust, lottery, foreign currency exchange reservation, pay-easy, Web oral receipt, safe deposit box, external linkage, foreign remittance, fund management, e-combination, payment, nursing care/medical care/dispensing compensation receivable factoring, mortgage, and Internet and telephone banking services. In addition, the company offers staffing, money lending and credit guarantee, mortgage loans guarantee, printing, bookbinding, packing and shipping, leasing, and clerical agency and system engineering services. It operates through a network of 128 branches in Japan. The company was founded in 1895 and is headquartered in Numazu, Japan.

About Banco Santander-Chile

(Get Rating)

Banco Santander-Chile, together with its subsidiaries, provides commercial and retail banking products and services in Chile. It operates through Retail Banking, Middle-Market, Corporate Investment Banking, and Corporate Activities segments. The company offers debit and credit cards, checking accounts, and savings products; consumer, automobile, commercial, mortgage, and government-guaranteed loans; and Chilean peso and foreign currency denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines, as well as mortgage financing services. It also provides mutual funds, insurance and securities brokerage, foreign exchange, financial leasing, factoring, financial consulting and advisory, investment management, foreign trade, treasury, and transactional services, as well as specialized services to finance projects for the real estate industry. In addition, the company offers short-term financing and fund raising, and brokerage services, as well as derivatives, securitization, and other tailor-made products. It serves individuals, small to middle-sized entities, companies, and large corporations, as well as universities, government entities, and local and regional governments. As of December 31, 2021, the company operated 326 branches, which include 220 under the Santander brand name, 14 under the Select brand name, 7 specialized branches for the middle market, and 22 as auxiliary and payment centers, as well as 1,338 ATMs, including depository ATMs. Banco Santander-Chile was incorporated in 1977 and is headquartered in Santiago, Chile.

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