Banco de Chile (BCH) versus Boc Hong Kong (BHKLY) Head to Head Comparison

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Banco de Chile (NYSE:BCH) and Boc Hong Kong (OTCMKTS:BHKLY) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Risk & Volatility

Banco de Chile has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Boc Hong Kong has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Dividends

Banco de Chile pays an annual dividend of $0.79 per share and has a dividend yield of 2.6%. Boc Hong Kong pays an annual dividend of $2.74 per share and has a dividend yield of 3.0%. Banco de Chile pays out 46.5% of its earnings in the form of a dividend. Banco de Chile has raised its dividend for 7 consecutive years.

Profitability

This table compares Banco de Chile and Boc Hong Kong’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco de Chile 24.84% 18.09% 1.67%
Boc Hong Kong N/A N/A N/A

Valuation and Earnings

This table compares Banco de Chile and Boc Hong Kong’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco de Chile $3.61 billion 4.20 $951.79 million $1.70 17.67
Boc Hong Kong $10.08 billion 4.72 $3.99 billion N/A N/A

Boc Hong Kong has higher revenue and earnings than Banco de Chile.

Insider and Institutional Ownership

1.3% of Banco de Chile shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Banco de Chile and Boc Hong Kong, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco de Chile 1 1 0 0 1.50
Boc Hong Kong 0 0 0 1 4.00

Banco de Chile presently has a consensus price target of $76.00, indicating a potential upside of 153.00%. Given Banco de Chile’s higher probable upside, research analysts clearly believe Banco de Chile is more favorable than Boc Hong Kong.

Summary

Boc Hong Kong beats Banco de Chile on 8 of the 14 factors compared between the two stocks.

Banco de Chile Company Profile

Banco de Chile, together with its subsidiaries, provides banking and financial products and services to customers in Chile. The company operates through four segments: Retail, Wholesale, Treasury and Money Market Operations, and Subsidiaries. It offers deposit products, such as checking accounts, current accounts, demand deposits, demand accounts, saving accounts, and time deposits; credit cards; installment loans; credit lines; and residential mortgage loans, as well as short and long term financing. The company also provides commercial loans, such as factoring and leasing; trade finance services; liquidity management services, debt instruments, foreign trade, and derivative contracts; capital market services; cash management and non-lending services that include payroll, payment, and collection services, as well as treasury, financial advisory, and risk management products. In addition, it offers financial services, such as securities brokerage, mutual funds management, investment banking, insurance brokerage, and securitization services. The company serves customers in individuals; small and medium enterprises; and wholesale customers. As of December 31, 2017, it operated through 399 branches comprising 253 branches under the Banco de Chile brand name, 41 branches under the Banco Edwards Citi brand name, and 105 branches under the Banco CrediChile brand name, as well as 1,464 automatic teller machines. Banco de Chile was founded in 1855 and is headquartered in Santiago, Chile.

Boc Hong Kong Company Profile

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, Mainland China, and internationally. It operates through four segments: Personal Banking, Corporate Banking, Treasury, and Insurance. The company offers savings, current, and time deposit accounts; mortgage plans; overdrafts; personal loans; personal life, family, medical and accident, travel and leisure, business protection, home, domestic helper, motor, and golfer insurance products; wealth management services; and Internet, phone, and mobile banking services. It also provides credit card, remittance, autopay, and trust services, as well as safe deposit boxes and gift cheques. In addition, the company offers commercial financing, machinery and equipment financing, and project financing and syndicated loans; business loans; SME loans; treasury products; cash management services; import and export trade finance services; e-commerce services; custody services; and business comprehensive, property, liability, group, and retailer comprehensive insurance plans. Further, it provides investment products and services, including securities, foreign exchange, fund, precious metals and FX margin, bonds, investment deposits, structured deposits, equity linked deposits, and premium and option linked deposits. The company operates approximately 197 branches and approximately 1,000 self-service machines. BOC Hong Kong (Holdings) Limited was founded in 1917 and is based in Central, Hong Kong. The company is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. BOC Hong Kong (Holdings) Limited is a subsidiary of BOC Hong Kong (BVI) Limited.

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