Critical Comparison: Banco Santander-Chile (BSAC) & First Busey Corporation (BUSE)

Banco Santander-Chile (NASDAQ: BSAC) and First Busey Corporation (NASDAQ:BUSE) are both banks – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Insider & Institutional Ownership

45.4% of First Busey Corporation shares are held by institutional investors. 9.6% of First Busey Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Banco Santander-Chile and First Busey Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander-Chile 29.10% 20.58% 1.69%
First Busey Corporation 22.02% 10.42% 1.18%

Analyst Recommendations

This is a summary of recent ratings and target prices for Banco Santander-Chile and First Busey Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander-Chile 0 3 0 0 2.00
First Busey Corporation 0 3 0 0 2.00

Banco Santander-Chile currently has a consensus target price of $26.00, suggesting a potential downside of 14.45%. First Busey Corporation has a consensus target price of $32.67, suggesting a potential upside of 10.47%. Given First Busey Corporation’s higher possible upside, analysts clearly believe First Busey Corporation is more favorable than Banco Santander-Chile.

Volatility and Risk

Banco Santander-Chile has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, First Busey Corporation has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Dividends

Banco Santander-Chile pays an annual dividend of $0.85 per share and has a dividend yield of 2.8%. First Busey Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Banco Santander-Chile pays out 48.6% of its earnings in the form of a dividend. First Busey Corporation pays out 47.1% 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.

Earnings and Valuation

This table compares Banco Santander-Chile and First Busey Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Banco Santander-Chile N/A N/A N/A $1.75 17.37
First Busey Corporation $240.06 million 5.99 $49.69 million $1.53 19.33

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

Summary

First Busey Corporation beats Banco Santander-Chile on 6 of the 11 factors compared between the two stocks.

About Banco Santander-Chile

Banco Santander-Chile (the Bank), formerly Banco Santander Chile, is a Chilean bank. The Bank’s segments include Retail banking, Middle-market, Global Corporate Banking and Corporate Activities (Other). The Retail Banking segment consists of individuals and small to middle-sized entities (SMEs). The Middle-market segment serves companies and large corporations. The Global Corporate Banking segment consists of foreign and domestic multinational companies. The Corporate Activities segment includes its Financial Management Division, which develops global management functions. It provides a range of commercial and retail banking services to its customers, including Chilean peso and foreign currency denominated loans to finance a range of commercial transactions, trade, foreign currency forward contracts and credit lines and a range of retail banking services, including mortgage financing. In addition to its traditional banking operations, the Bank offers a range of financial services.

About First Busey Corporation

First Busey Corporation (First Busey) is a financial holding company. The Company offers a range of financial services through its banking and non-banking subsidiaries. The Company operates through three segments: Banking, Remittance Processing and Wealth Management. The Banking segment provides a range of banking services to individual and corporate customers through its branch network in downstate Illinois, St. Louis, Missouri metropolitan area, southwest Florida and through its branch in Indianapolis, Indiana. The Remittance Processing segment provides for online bill payments, lockbox and walk-in payments. The Wealth Management segment provides a range of asset management, investment and fiduciary services to individuals, businesses and foundations, philanthropic advisory services and farm and brokerage services. The Company conducts the business of banking and related services through Busey Bank. The Company’s subsidiaries also include First Community Financial Bank.

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