QCR (NASDAQ:QCRH) & Banco De Chile (NYSE:BCH) Critical Comparison

Banco De Chile (NYSE:BCH) and QCR (NASDAQ:QCRH) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for Banco De Chile and QCR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco De Chile	1	4	0	0	1.80
QCR	0	2	4	0	2.67

Banco De Chile presently has a consensus price target of $40.00, indicating a potential downside of 5.66%. QCR has a consensus price target of $108.75, indicating a potential upside of 5.90%. Given QCR’s stronger consensus rating and higher possible upside, analysts plainly believe QCR is more favorable than Banco De Chile.

Risk and Volatility

Banco De Chile has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Banco De Chile and QCR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco De Chile	31.01%	21.10%	2.26%
QCR	22.86%	12.87%	1.50%

Valuation & Earnings

This table compares Banco De Chile and QCR”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco De Chile	$3,109.91 billion	0.01	$1.30 billion	$2.64	16.06
QCR	$603.75 million	2.79	$127.19 million	$8.46	12.14

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

Insider & Institutional Ownership

1.2% of Banco De Chile shares are held by institutional investors. Comparatively, 70.0% of QCR shares are held by institutional investors. 5.9% of Banco De Chile shares are held by company insiders. Comparatively, 3.2% of QCR shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Banco De Chile pays an annual dividend of $1.65 per share and has a dividend yield of 3.9%. QCR pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Banco De Chile pays out 62.5% of its earnings in the form of a dividend. QCR pays out 4.7% 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.

About Banco De Chile

Banco de Chile, together with its subsidiaries, provides various banking services to customers in Chile. The company offers checking and debit accounts, debit and credit cards, and lines of credit; mortgage, consume, commercial, general purpose mortgage loans, and finance leases; and factoring services, mutual fund management, stock brokerage, foreign trade, payments and collections, insurance brokerage, including life and general insurance, as well as time deposits, savings instruments, and foreign currency services through branches under the Banco de Chile and Banco Edwards brands. It also provides working capital loans, corporate credit cards, foreign currency brokerage, leasing and long-term syndicated loans, advisory services for mergers acquisitions and debt restructuring; cash management services, including payment and collection services; and international fund transfer networks, current account and deposit products, fund administration, and treasury management. In addition, the company offers insurance brokerage, derivative contracts, transactional banking, financial risks coverage, representation and asset custody, investment banking and management, capital markets products, foreign exchange transactions; and advisory services for initial public offerings, capital increases, sales and purchases of blocks of shares, private capital placements, public share tenders, company valuations, bond issuances, and syndicated loans services. Further, it provides foreign exchange brokerage, forward contracts, interest rate swaps, repurchase agreements, and other investment products based on bonds, mortgage bonds and deposits. The company serves individuals, small and medium-sized companies, corporate clients, and large companies, real estate and construction, and high net worth family office customers. Banco de Chile was founded in 1893 and is headquartered in Santiago, Chile.

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.