Contrasting Banco Itaú Chile (NYSE:ITCL) & American Business Bank (OTCMKTS:AMBZ)

Banco Itaú Chile (NYSE:ITCL – Get Rating) and American Business Bank (OTCMKTS:AMBZ – Get Rating) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Institutional and Insider Ownership

0.2% of Banco Itaú Chile shares are owned by institutional investors. Comparatively, 8.8% of American Business Bank shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Banco Itaú Chile has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, American Business Bank has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Profitability

This table compares Banco Itaú Chile and American Business Bank’s 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%
American Business Bank	35.68%	N/A	N/A

Earnings & Valuation

This table compares Banco Itaú Chile and American Business Bank’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Itaú Chile	$2.94 billion	0.41	$487.62 million	$0.70	5.00
American Business Bank	$134.47 million	1.99	$48.56 million	$5.61	5.29

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

Analyst Ratings

This is a summary of current ratings for Banco Itaú Chile and American Business Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Itaú Chile	0	0	0	0	N/A
American Business Bank	0	0	0	0	N/A

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.

About American Business Bank

(Get Rating)

American Business Bank engages in the provision of financial services. Its services include deposit services, treasury management, credit services, consulting and referral services, personalized banking, and international banking. The company was founded by Robert F. Schack, Robin C. Paterson, Trent D. Merrill, John Schlobohm, Leon L. Blankstein, Donald P. Johnson, and David van Skilling on May 14, 1998 and is headquartered in Los Angeles, CA.