Itau Corpbanca (NYSE: ITCB) and M&T Bank (NYSE:MTB) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Earnings and Valuation
This table compares Itau Corpbanca and M&T Bank’s revenue, earnings per share and valuation.
||Earnings Per Share
M&T Bank has higher revenue and earnings than Itau Corpbanca.
Insider & Institutional Ownership
0.6% of Itau Corpbanca shares are owned by institutional investors. Comparatively, 77.7% of M&T Bank shares are owned by institutional investors. 0.5% of M&T Bank shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Itau Corpbanca and M&T Bank’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Volatility & Risk
Itau Corpbanca has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, M&T Bank has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for Itau Corpbanca and M&T Bank, as reported by MarketBeat.
||Strong Buy Ratings
M&T Bank has a consensus price target of $173.93, suggesting a potential downside of 8.63%. Given M&T Bank’s stronger consensus rating and higher probable upside, analysts plainly believe M&T Bank is more favorable than Itau Corpbanca.
M&T Bank pays an annual dividend of $3.00 per share and has a dividend yield of 1.6%. Itau Corpbanca does not pay a dividend. M&T Bank pays out 34.5% of its earnings in the form of a dividend.
M&T Bank beats Itau Corpbanca on 12 of the 14 factors compared between the two stocks.
About Itau Corpbanca
Itau Corpbanca is a Chile-based financial institution (the Bank) engaged in the banking sector. The Bank operates in seven segments: Large, Corporate and Real Estate Companies, which includes companies that belong to major economic groups and specific industries; Companies, which includes leasing, factoring and other financial services for business customers; Traditional and Private Banking, which offers checking accounts, consumer loans, credit cards and mortgage loans; Lower Income Retail Banking, corresponding to operations of Banco Condell, which offers consumer loans, credit cards and mortgage loans; Treasury and International, which comprises treasury activities, such as financial management and funding; Non-Banking Financial Services, which provides services rendered by its subsidiaries, including insurance brokerage, financial advisory and securities brokerage, and Colombia, which includes commercial and retail banking services provided by CorpBanca Colombia and Helm Bank.
About M&T Bank
M&T Bank Corporation (M&T) is a bank holding company. As of December 31, 2016, M&T had two bank subsidiaries: Manufacturers and Traders Trust Company (M&T Bank) and Wilmington Trust, National Association (Wilmington Trust, N.A.). The Company, along with its subsidiaries, offers a range of retail and commercial banking, trust and wealth management, and investment services. Its segments are Business Banking, which provides a range of services to small businesses and professionals; Commercial Banking, which provides a range of credit products and banking services; Commercial Real Estate, which provides credit and deposit services; Discretionary Portfolio, which includes investment and trading account securities, residential real estate loans and other assets, and short-term and long-term borrowed funds; Residential Mortgage Banking, which originates and services residential mortgage loans, and Retail Banking, which services to consumers through various delivery channels.
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