Reviewing Banco Itaú Chile (ITCL) and Its Rivals

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

Profitability

This table compares Banco Itaú Chile and its rivals’ 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%

Institutional and Insider Ownership

0.2% of Banco Itaú Chile shares are owned by institutional investors. Comparatively, 26.0% of shares of all “Commercial banks, not elsewhere classified” companies are owned by institutional investors. 6.8% of shares of all “Commercial banks, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Banco Itaú Chile	$2.94 billion	$487.62 million	5.00
Banco Itaú Chile Competitors	$105.28 billion	$3.07 billion	9.07

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

Analyst Ratings

This is a summary of recent ratings and target prices for Banco Itaú Chile and its rivals, as reported by MarketBeat.

	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	60	2.34

As a group, “Commercial banks, not elsewhere classified” companies have a potential upside of 85.02%. Given Banco Itaú Chile’s rivals higher probable upside, analysts plainly believe Banco Itaú Chile has less favorable growth aspects than its rivals.

Dividends

Banco Itaú Chile pays an annual dividend of $0.17 per share and has a dividend yield of 4.9%. 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 17.0% of their earnings in the form of a dividend.

Risk & Volatility

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

Summary

Banco Itaú Chile rivals 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.