Dnb Asa (OTCMKTS: DNHBY) and Banco Santander-Chile (NYSE:BSAC) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Earnings and Valuation

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This table compares Dnb Asa and Banco Santander-Chile’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dnb Asa $8.42 billion 3.67 $2.53 billion $1.55 12.23
Banco Santander-Chile $4.14 billion 3.96 $844.20 million $1.94 17.93

Dnb Asa has higher revenue and earnings than Banco Santander-Chile. Dnb Asa 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Dnb Asa 30.04% 10.27% 0.77%
Banco Santander-Chile 20.98% 17.85% 1.52%

Dividends

Dnb Asa pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Banco Santander-Chile pays an annual dividend of $0.85 per share and has a dividend yield of 2.4%. Dnb Asa pays out 36.1% of its earnings in the form of a dividend. Banco Santander-Chile pays out 43.8% 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. Dnb Asa is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

0.1% of Dnb Asa shares are held by institutional investors. Comparatively, 16.1% of Banco Santander-Chile shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Dnb Asa and Banco Santander-Chile, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dnb Asa 0 0 0 0 N/A
Banco Santander-Chile 2 4 0 0 1.67

Banco Santander-Chile has a consensus target price of $27.75, suggesting a potential downside of 20.24%. Given Banco Santander-Chile’s higher probable upside, analysts plainly believe Banco Santander-Chile is more favorable than Dnb Asa.

Volatility & Risk

Dnb Asa has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Banco Santander-Chile has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Summary

Banco Santander-Chile beats Dnb Asa on 7 of the 13 factors compared between the two stocks.

About Dnb Asa

DNB ASA provides various banking products and services for retail and corporate customers in Norway and internationally. It operates through five segments: Personal customers, Small and Medium-Sized Enterprises, Large Corporates and International Customers, Trading, and Traditional Pension Products. The company offers savings and investment products, including saving accounts, home savings products, equities, retirement savings, fixed rate deposits, exchange traded products, bonds and commercial papers, and asset management services; and loans, such as home mortgages, car and consumer loans, installment loans, trade finance, and export financing, as well as overdraft facilities, bank guarantees, and leasing and factoring services. It also provides various cards; a range of insurance products comprising car, boat, motor vehicle, household contents, home, holiday home, travel, and life insurance products, as well as pet insurance for cats and dogs; and pension plans. In addition, the company offers investment banking advisory and financing services, such as mergers and acquisitions, and equity and debt capital markets for corporations and private equity firms; and foreign exchange and treasury, cash management, payments, research, commodities, corporate finance, interest rates, securities, real estate broking, and Internet and mobile banking services. It offers its products and services to various sectors, including energy; financial institutions; healthcare; manufacturing; packaging and forest products; seafood; shipping, offshore, and logistics; and telecom, media, and technology. The company distributes its products and services through its distribution network comprising branches, telephone banking, digital banking, and real estate broking, as well as external channels, such as post offices, and in-store postal and banking outlets. DNB ASA was founded in 1822 and is headquartered in Oslo, Norway.

About Banco Santander-Chile

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 423 branches, which include 274 under the Santander brand name, 39 under the Santander Banefe brand name, 53 under the Select brand name, 8 specialized branches for the middle market, and 49 as auxiliary and payment centers, as well as 1,295 ATMs. Banco Santander-Chile was founded in 1977 and is headquartered in Santiago, Chile.

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