Banco Itau Chile Spon (NASDAQ:ITCLY) & Banco Macro (NYSE:BMA) Critical Review

Banco Itau Chile Spon (NASDAQ:ITCLY) and Banco Macro (NYSE:BMA) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Dividends

Banco Itau Chile Spon pays an annual dividend of $0.17 per share and has a dividend yield of 5.5%. Banco Macro pays an annual dividend of $21.57 per share and has a dividend yield of 31.0%. Banco Itau Chile Spon pays out 25.8% of its earnings in the form of a dividend. Banco Macro pays out 127.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Banco Itau Chile Spon and Banco Macro”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Itau Chile Spon	$3.99 billion	0.50	$423.68 million	$0.66	4.70
Banco Macro	-$508.32 billion	-0.01	$2.23 billion	$16.93	4.11

Banco Macro has lower revenue, but higher earnings than Banco Itau Chile Spon. Banco Macro is trading at a lower price-to-earnings ratio than Banco Itau Chile Spon, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Banco Itau Chile Spon and Banco Macro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Itau Chile Spon	10.54%	10.65%	0.91%
Banco Macro	12.58%	25.97%	7.73%

Institutional & Insider Ownership

22.2% of Banco Itau Chile Spon shares are owned by institutional investors. 18.3% of Banco Macro shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Banco Itau Chile Spon and Banco Macro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Itau Chile Spon	0	0	0	0	N/A
Banco Macro	0	2	0	0	2.00

Banco Macro has a consensus price target of $70.00, indicating a potential upside of 0.65%. Given Banco Macro’s higher possible upside, analysts clearly believe Banco Macro is more favorable than Banco Itau Chile Spon.

Summary

Banco Macro beats Banco Itau Chile Spon on 8 of the 13 factors compared between the two stocks.

About Banco Itau Chile Spon

Banco Ita? Chile provides banking services principally in Chile and Colombia. It provides wholesale and corporate banking; real estate and construction and retail, private, companies and personal banking services, as well as treasury and other financial services. Banco Ita? Chile, formerly known as Ita? Corpbanca, is based in Santiago, Chile.

About Banco Macro

Banco Macro S.A. provides various banking products and services to retail and corporate customers in Argentina. It offers various retail banking products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines (ATMs), and money transfers. The company also provides personal loans, document discounts, residential mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services, including deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services; and trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; and working capital facilities, credit for investment projects, and leasing and foreign trade transactions. Further, the company provides transaction services, such as cash management, collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; information services comprising Datanet and Interpymes services to corporate customers; and Internet and mobile banking services. Additionally, it offers short-term and medium-to-long-term corporate lending products. Banco Macro S.A. was incorporated in 1966 and is headquartered in Buenos Aires, Argentina.