Banco Santander-Chile (BSAC) and Woori Bank (NYSE:WF) Financial Analysis

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Banco Santander-Chile (NYSE:BSAC) and Woori Bank (NYSE:WF) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Risk and Volatility

Banco Santander-Chile has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Woori Bank has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Banco Santander-Chile 22.48% 18.20% 1.54%
Woori Bank 17.52% 8.01% 0.52%

Insider & Institutional Ownership

14.2% of Banco Santander-Chile shares are owned by institutional investors. Comparatively, 0.5% of Woori Bank shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Banco Santander-Chile and Woori Bank, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander-Chile 1 1 1 0 2.00
Woori Bank 0 0 1 0 3.00

Banco Santander-Chile currently has a consensus target price of $33.00, suggesting a potential upside of 8.02%. Given Banco Santander-Chile’s higher possible upside, equities analysts plainly believe Banco Santander-Chile is more favorable than Woori Bank.

Dividends

Banco Santander-Chile pays an annual dividend of $1.12 per share and has a dividend yield of 3.7%. Woori Bank pays an annual dividend of $1.17 per share and has a dividend yield of 2.8%. Banco Santander-Chile pays out 57.7% of its earnings in the form of a dividend. Woori Bank pays out 21.7% 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 Banco Santander-Chile and Woori Bank’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Santander-Chile $4.14 billion 3.48 $844.20 million $1.94 15.75
Woori Bank $8.94 billion 1.07 $1.42 billion $5.40 7.87

Woori Bank has higher revenue and earnings than Banco Santander-Chile. Woori Bank 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.

Summary

Banco Santander-Chile beats Woori Bank on 8 of the 14 factors compared between the two stocks.

Banco Santander-Chile Company Profile

Banco Santander-Chile provides commercial and retail banking products and services in Chile. It operates through Retail Banking, Middle-Market, and Global Corporate Banking segments. The company offers checking accounts and savings products; consumer, auto, commercial, mortgage, and government-guaranteed loans; credit and debit cards; and Chilean peso and foreign currency denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines. It also provides mutual funds, insurance and stock brokerage, foreign exchange, leasing, factoring, financial consulting, investment management, foreign trade and mortgage financing, 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, brokerage services, 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. The company operates 385 branches, which include 276 under the Santander brand name, 51 under the Select brand name, 7 specialized branches for the middle market, and 31 as auxiliary and payment centers, as well as 926 ATMs. Banco Santander-Chile was founded in 1977 and is headquartered in Santiago, Chile.

Woori Bank Company Profile

Woori Bank engages in the provision of personal and commercial banking services. It operates through the following segments: Consumer Banking, Corporate Banking, Investment Banking, Capital Markets, Credit Cards, and Other Operations. The Consumer Banking segment consists of lending to and taking deposits from its retail customers. The Corporate Banking segment provides commercial banking services to large corporate customers including government-owned enterprises and small- and medium-sized enterprises. The Investment Banking segment offers project finance and financial advisory services. The Capital Markets segment includes securities investment and trading, derivatives trading, asset securitization services, and investment banking. The Credit Cards segment comprises of Woori, BC Card, and Visa brands. The Other Operations segment manages credit management and collection department, treasury operations, including transactions of available-for-sale securities and financing among financial institutions. The compan ywas founded on January 30, 1899 and is headquartered in Seoul, South Korea.

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