Analyzing Banco de Chile (NYSE:BCH) & JSB Financial (OTCMKTS:JFWV)

JSB Financial (OTCMKTS:JFWV) and Banco de Chile (NYSE:BCH) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Dividends

JSB Financial pays an annual dividend of $2.40 per share and has a dividend yield of 2.7%. Banco de Chile pays an annual dividend of $1.24 per share and has a dividend yield of 5.1%. Banco de Chile pays out 41.8% of its earnings in the form of a dividend. Banco de Chile has increased its dividend for 2 consecutive years. Banco de Chile is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

JSB Financial has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Banco de Chile has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Profitability

This table compares JSB Financial and Banco de Chile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JSB Financial	N/A	N/A	N/A
Banco de Chile	29.41%	23.65%	2.25%

Earnings & Valuation

This table compares JSB Financial and Banco de Chile’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JSB Financial	N/A	N/A	$3.00 million	N/A	N/A
Banco de Chile	$5.30 billion	N/A	$1.65 billion	$2.97	8.13

Banco de Chile has higher revenue and earnings than JSB Financial.

Analyst Ratings

This is a breakdown of current ratings for JSB Financial and Banco de Chile, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JSB Financial	0	0	0	0	N/A
Banco de Chile	0	3	1	0	2.25

Banco de Chile has a consensus price target of $22.00, suggesting a potential downside of 8.86%. Given Banco de Chile’s higher probable upside, analysts clearly believe Banco de Chile is more favorable than JSB Financial.

Insider & Institutional Ownership

0.1% of JSB Financial shares are owned by institutional investors. Comparatively, 1.2% of Banco de Chile shares are owned by institutional investors. 5.9% of Banco de Chile shares are owned by company insiders. 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.

Summary

Banco de Chile beats JSB Financial on 11 of the 13 factors compared between the two stocks.

About JSB Financial

JSB Financial Inc. operates as the bank holding company for Jefferson Security Bank that provides various banking products and services to individuals, agricultural businesses, small and medium-sized businesses, local government entities, and non-profit organizations. It accepts various deposit products, such as checking, savings, money market, individual retirement, overdraft protection, and sweep accounts, as well as certificates of deposit. The company's loan portfolio includes personal and vehicle, mortgage, construction, commercial, and home equity loans. It also offers ATM, online and mobile banking, bill pay, paperless statements, cash management, remote deposit capture, merchant, and credit and debit card services. The company was founded in 1869 and is headquartered in Shepherdstown, West Virginia.

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.