Financial Contrast: Bryn Mawr Bank Corporation (BMTC) vs. Banco De Chile (BCH)

Bryn Mawr Bank Corporation (NASDAQ: BMTC) and Banco De Chile (NYSE:BCH) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Insider & Institutional Ownership

79.2% of Bryn Mawr Bank Corporation shares are held by institutional investors. Comparatively, 1.5% of Banco De Chile shares are held by institutional investors. 2.3% of Bryn Mawr Bank Corporation shares are held by company insiders. 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.

Dividends

Bryn Mawr Bank Corporation pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. Banco De Chile pays an annual dividend of $2.12 per share and has a dividend yield of 2.4%. Bryn Mawr Bank Corporation pays out 40.4% of its earnings in the form of a dividend. Banco De Chile pays out 41.0% 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. Banco De Chile has raised its dividend for 5 consecutive years. Banco De Chile is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Bryn Mawr Bank Corporation and Banco De Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bryn Mawr Bank Corporation 21.17% 9.96% 1.15%
Banco De Chile 23.78% 19.01% 1.81%

Volatility & Risk

Bryn Mawr Bank Corporation has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Banco De Chile has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Bryn Mawr Bank Corporation and Banco De Chile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bryn Mawr Bank Corporation 0 1 2 0 2.67
Banco De Chile 0 2 0 0 2.00

Bryn Mawr Bank Corporation currently has a consensus target price of $48.50, indicating a potential upside of 17.58%. Banco De Chile has a consensus target price of $84.00, indicating a potential downside of 4.01%. Given Bryn Mawr Bank Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Bryn Mawr Bank Corporation is more favorable than Banco De Chile.

Valuation and Earnings

This table compares Bryn Mawr Bank Corporation and Banco De Chile’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bryn Mawr Bank Corporation $161.51 million 4.34 $37.06 million $2.18 18.92
Banco De Chile $2.24 billion 6.53 $863.86 million $5.17 16.92

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

Summary

Banco De Chile beats Bryn Mawr Bank Corporation on 9 of the 17 factors compared between the two stocks.

Bryn Mawr Bank Corporation Company Profile

Bryn Mawr Bank Corporation is the bank holding company of the Bryn Mawr Trust Company (the Bank). The Company and its subsidiaries offer a range of personal and business banking services, consumer and commercial loans, equipment leasing, mortgages, insurance and wealth management services, including investment management, trust and estate administration, retirement planning, custody services, and tax planning and preparation from various location across Montgomery, Delaware, Chester, Philadelphia and Dauphin counties of Pennsylvania, and New Castle county in Delaware. The Company’s segments include Banking and Wealth Management. The Banking segment consists of commercial and retail banking. The Wealth Management segment’s activities include trust administration, other related fiduciary services, custody, investment management and advisory services, employee benefits and individual retirement accounts (IRA) administration, estate settlement, tax services and brokerage.

Banco De Chile Company Profile

Banco de Chile is a full service financial institution, which is engaged in providing credit and non-credit products and services in Chile. The Bank offers a range of banking services to its customers, ranging from individuals to corporations. The Bank’s segments include Retail, which focuses on individuals and small and medium-sized companies, where the product offering focuses on consumer loans, commercial loans, checking accounts, credit cards, credit lines and mortgage loans; Wholesale, which focuses on corporate clients and companies, where the product offering focuses on commercial loans, checking accounts and liquidity management services, debt instruments, foreign trade, derivative contracts and leases; Treasury, which includes the associated revenues to the management of the investment portfolio and the business of financial transactions and currency trading, and Subsidiaries, which corresponds to companies and corporations controlled by the Bank.

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