Banco Santander-Chile (BSAC) & Provident Financial Holdings (PROV) Financial Analysis

Banco Santander-Chile (NASDAQ: BSAC) and Provident Financial Holdings (NASDAQ:PROV) are both financials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Banco Santander-Chile and Provident Financial Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander-Chile 0 2 1 0 2.33
Provident Financial Holdings 0 3 0 0 2.00

Banco Santander-Chile presently has a consensus target price of $26.00, indicating a potential downside of 11.68%. Provident Financial Holdings has a consensus target price of $20.00, indicating a potential upside of 1.37%. Given Provident Financial Holdings’ higher probable upside, analysts plainly believe Provident Financial Holdings is more favorable than Banco Santander-Chile.

Earnings and Valuation

This table compares Banco Santander-Chile and Provident Financial Holdings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Banco Santander-Chile $2.25 billion 6.16 N/A N/A N/A
Provident Financial Holdings $67.60 million 2.25 $4.92 million $0.64 30.83

Provident Financial Holdings has higher revenue, but lower earnings than Banco Santander-Chile.

Insider & Institutional Ownership

59.9% of Provident Financial Holdings shares are held by institutional investors. 15.7% of Provident Financial Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Provident Financial Holdings pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. Banco Santander-Chile does not pay a dividend. Provident Financial Holdings pays out 87.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Banco Santander-Chile and Provident Financial Holdings’ 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%
Provident Financial Holdings 7.11% 3.96% 0.43%

Summary

Banco Santander-Chile beats Provident Financial Holdings on 8 of the 13 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 Provident Financial Holdings

Provident Financial Holdings, Inc. is the holding company of Provident Savings Bank, F.S.B. (the Bank). The Bank is a federally chartered stock savings bank. The Company operates through two segments: Provident Bank and Provident Bank Mortgage (PBM). The Bank’s operations primarily consist of accepting deposits from customers within the communities surrounding the Bank’s full service offices and investing those funds in single-family loans, multi-family loans, commercial real estate loans, construction loans, commercial business loans, consumer loans and other mortgage loans. PBM operations primarily consist of the origination, purchase and sale of mortgage loans secured by single-family residences. The Bank is a financial services company committed to serving consumers and small to mid-sized businesses in the Inland Empire region of Southern California. The Bank offers business checking accounts, other business banking services and services loans for others.

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