China Minsheng (OTCMKTS:CMAKY – Get Free Report) and Banco Santander Chile (NYSE:BSAC – Get Free Report) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.
Profitability
This table compares China Minsheng and Banco Santander Chile’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Minsheng | 11.27% | 4.49% | 0.39% |
| Banco Santander Chile | 24.74% | 22.18% | 1.58% |
Dividends
China Minsheng pays an annual dividend of $0.27 per share and has a dividend yield of 5.2%. Banco Santander Chile pays an annual dividend of $0.99 per share and has a dividend yield of 3.3%. China Minsheng pays out 30.7% of its earnings in the form of a dividend. Banco Santander Chile pays out 42.7% 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. China Minsheng is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Minsheng | 0 | 1 | 0 | 0 | 2.00 |
| Banco Santander Chile | 1 | 4 | 0 | 0 | 1.80 |
Banco Santander Chile has a consensus price target of $27.67, suggesting a potential downside of 8.29%. Given Banco Santander Chile’s higher possible upside, analysts plainly believe Banco Santander Chile is more favorable than China Minsheng.
Institutional and Insider Ownership
6.4% of Banco Santander Chile shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
China Minsheng has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, Banco Santander Chile has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Valuation & Earnings
This table compares China Minsheng and Banco Santander Chile”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Minsheng | $37.47 billion | 0.61 | $4.49 billion | $0.88 | 5.93 |
| Banco Santander Chile | $4.72 billion | 3.01 | $938.26 million | $2.32 | 13.00 |
China Minsheng has higher revenue and earnings than Banco Santander Chile. China Minsheng 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.
Summary
Banco Santander Chile beats China Minsheng on 9 of the 14 factors compared between the two stocks.
About China Minsheng
China Minsheng Banking Corp., Ltd. provides banking products and services for individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit books and certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, micro-credit products for individuals, medium and long term, and short-term working capital loans; and debit and credit cards. In addition, it provides appointed and domestic remittance, payment and collection agent, clearing, safe deposit boxes, VIP, and salary and welfare agent card services, as well as internet, mobile, telephone, and self-serve banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; individual forex settlement, forex remittance, travelers promissory notes, collection, individual deposit certificate, and guarantee letter products; and comprehensive credit granting, forex settlement and sale, financial product investment, asset management, and trust financing services. Additionally, it provides convenient finance and investment banking services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company operates through branch-level institutions, business outlets, community sub-branches, and small business sub-branches. China Minsheng Banking Corp., Ltd. was incorporated in 1996 and is headquartered in Beijing, the People's Republic of China.
About Banco Santander Chile
Banco Santander-Chile, together with its subsidiaries, provides commercial and retail banking services in Chile. It operates through Retail Banking, Middle-Market, Corporate Investment Banking, and Corporate Activities segments. The company offers debit and credit cards, checking accounts, and savings products; consumer, automobile, commercial, mortgage, and government-guaranteed loans; and Chilean peso and foreign currency-denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines, as well as mortgage financing services. It also provides mutual fund management, insurance and securities brokerage, foreign exchange services, financial leasing, financial consulting and advisory, investment management, foreign trade, leasing, factoring, treasury, and transactional services, as well as specialized services to finance residential projects. In addition, the company offers short-term financing and fundraising, and brokerage services, as well as derivatives, securitization, and other products; and manages capital allocations. 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 was incorporated in 1977 and is headquartered in Santiago, Chile. Banco Santander-Chile operates as a subsidiary of Banco Santander, S.A.
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