Financial Analysis: Banco Itaú Chile (ITCL) versus Its Rivals

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Banco Itaú Chile (NYSE:ITCLGet Rating) is one of 70 publicly-traded companies in the “Commercial banks, not elsewhere classified” industry, but how does it weigh in compared to its competitors? We will compare Banco Itaú Chile to similar businesses based on the strength of its institutional ownership, analyst recommendations, profitability, risk, dividends, valuation and earnings.

Volatility & Risk

Banco Itaú Chile has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Banco Itaú Chile’s competitors have a beta of 0.94, suggesting that their average share price is 6% less volatile than the S&P 500.

Profitability

This table compares Banco Itaú Chile and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Itaú Chile 11.23% 13.12% 1.06%
Banco Itaú Chile Competitors 18.91% 11.95% 0.97%

Dividends

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Banco Itaú Chile pays an annual dividend of $0.17 per share and has a dividend yield of 4.8%. Banco Itaú Chile pays out 24.3% of its earnings in the form of a dividend. As a group, “Commercial banks, not elsewhere classified” companies pay a dividend yield of 2.5% and pay out 16.9% of their earnings in the form of a dividend.

Institutional and Insider Ownership

0.2% of Banco Itaú Chile shares are held by institutional investors. Comparatively, 24.6% of shares of all “Commercial banks, not elsewhere classified” companies are held by institutional investors. 8.0% of shares of all “Commercial banks, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Banco Itaú Chile and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Banco Itaú Chile $2.94 billion $487.62 million 5.01
Banco Itaú Chile Competitors $13.56 billion $3.08 billion 8.96

Banco Itaú Chile’s competitors have higher revenue and earnings than Banco Itaú Chile. Banco Itaú Chile is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations for Banco Itaú Chile and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Itaú Chile 0 0 0 0 N/A
Banco Itaú Chile Competitors 629 2237 2268 59 2.34

As a group, “Commercial banks, not elsewhere classified” companies have a potential upside of 93.44%. Given Banco Itaú Chile’s competitors higher possible upside, analysts plainly believe Banco Itaú Chile has less favorable growth aspects than its competitors.

Summary

Banco Itaú Chile competitors beat Banco Itaú Chile on 8 of the 12 factors compared.

About Banco Itaú Chile

(Get Rating)

Banco Itau Chile engages in the provision of banking and financial services. It specializes in banking products such as financing, leasing, loans, insurance and credit cards. It operates through the following geographical segments: Chile and Colombia. The Chile segment consists of commercial and corporate banking, real estate and construction, large companies, retail banking, personal banking, small business, retail companies, Banco Condell consumer banking, international and treasury and other financial services. The Colombia segment offers commercial and retail banking and treasury and international business operations. The company was founded in 1871 and is headquartered in Las Condes, Chile.

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