Head to Head Comparison: ICICI Bank (IBN) vs. Banco Santander-Chile (BSAC)

ICICI Bank (NYSE:IBN) and Banco Santander-Chile (NYSE:BSAC) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Dividends

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ICICI Bank pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Banco Santander-Chile pays an annual dividend of $1.12 per share and has a dividend yield of 3.5%. ICICI Bank pays out 12.5% of its earnings in the form of a dividend. Banco Santander-Chile pays out 57.7% 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. ICICI Bank has raised its dividend for 6 consecutive years.

Profitability

This table compares ICICI Bank and Banco Santander-Chile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ICICI Bank	6.04%	3.93%	0.41%
Banco Santander-Chile	22.48%	18.27%	1.55%

Insider and Institutional Ownership

23.6% of ICICI Bank shares are owned by institutional investors. Comparatively, 13.6% of Banco Santander-Chile shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

ICICI Bank has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Banco Santander-Chile has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Earnings & Valuation

This table compares ICICI Bank and Banco Santander-Chile’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICICI Bank	$11.23 billion	2.82	$1.20 billion	$0.32	30.88
Banco Santander-Chile	$4.14 billion	3.67	$844.20 million	$1.94	16.64

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ICICI Bank and Banco Santander-Chile, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICICI Bank	0	1	2	0	2.67
Banco Santander-Chile	0	0	1	0	3.00

Banco Santander-Chile has a consensus price target of $34.00, indicating a potential upside of 5.30%. Given Banco Santander-Chile’s stronger consensus rating and higher probable upside, analysts plainly believe Banco Santander-Chile is more favorable than ICICI Bank.

About ICICI Bank

ICICI Bank Limited, together with its subsidiaries, provides banking and financial services in India and internationally. It operates through Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, General Insurance, and Others segments. The company offers savings, salary, pension, current, and other accounts; and fixed, recurring, and security deposits. It also provides home, car, two wheeler, personal, gold, and commercial business loans, as well as loans against securities and other loans; business loans, such as working capital finance, term loans, collateral free loans, loans without financials, finance for importers and exporters, and secured loans for credit card swipes, as well as loans for new entities, and schools and colleges; and credit, debit, prepaid, travel, and corporate cards. In addition, the company offers life, health, travel, car, two wheeler, home, and student medical insurance products; pockets wallet; fixed income products; investment products, such as mutual funds, gold monetization schemes, and initial public offerings, as well as other online investment services; and farmer finance, tractor loans, and micro banking services, as well as other services to agri traders and processors, and agri corporates. Further, it provides portfolio management, trade, foreign exchange, locker, private and NRI banking, and cash management services; family wealth and demat accounts; commercial banking, investment banking, capital markets and custodial, project and technology finance, and institutional banking services, as well as Internet, mobile, and phone banking services. Additionally, the company offers securities investment, broking, trading, and underwriting services; and merchant banking, private equity/venture capital fund management, trusteeship, and pension fund management services. As of March 31, 2018, it had a network of 4,867 branches and 14,367 ATMs. ICICI Bank Limited was founded in 1955 and is based in Mumbai, India.

About Banco Santander-Chile

Banco Santander-Chile provides commercial and retail banking products and services in Chile. It operates through Retail Banking, Middle-Market, and Global Corporate Banking segments. The company offers checking accounts and savings products; consumer, auto, commercial, mortgage, and government-guaranteed loans; credit and debit cards; and Chilean peso and foreign currency denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines. It also provides mutual funds, insurance and stock brokerage, foreign exchange, leasing, factoring, financial consulting, investment management, foreign trade and mortgage financing, treasury, and transactional services, as well as specialized services to finance projects for the real estate industry. In addition, the company offers short-term financing and fund raising, brokerage services, derivatives, securitization, and other tailor-made products. 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 operates 385 branches, which include 276 under the Santander brand name, 51 under the Select brand name, 7 specialized branches for the middle market, and 31 as auxiliary and payment centers, as well as 926 ATMs. Banco Santander-Chile was founded in 1977 and is headquartered in Santiago, Chile.