Critical Contrast: John Marshall Bancorp (NASDAQ:JMSB) vs. Banco De Chile (NYSE:BCH)

Banco De Chile (NYSE:BCH) and John Marshall Bancorp (NASDAQ:JMSB) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Banco De Chile and John Marshall Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco De Chile	1	4	0	0	1.80
John Marshall Bancorp	1	0	2	1	2.75

Banco De Chile currently has a consensus price target of $39.67, indicating a potential upside of 2.60%. John Marshall Bancorp has a consensus price target of $25.00, indicating a potential upside of 9.12%. Given John Marshall Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe John Marshall Bancorp is more favorable than Banco De Chile.

Dividends

Banco De Chile pays an annual dividend of $1.65 per share and has a dividend yield of 4.3%. John Marshall Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Banco De Chile pays out 62.5% of its earnings in the form of a dividend. John Marshall Bancorp pays out 23.1% 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.

Valuation & Earnings

This table compares Banco De Chile and John Marshall Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco De Chile	$3.89 billion	5.01	$1.30 billion	$2.64	14.64
John Marshall Bancorp	$68.17 million	4.74	$21.23 million	$1.73	13.24

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

Profitability

This table compares Banco De Chile and John Marshall Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco De Chile	31.01%	21.10%	2.26%
John Marshall Bancorp	20.41%	9.16%	1.04%

Risk and Volatility

Banco De Chile has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, John Marshall Bancorp has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Institutional and Insider Ownership

1.2% of Banco De Chile shares are owned by institutional investors. Comparatively, 39.1% of John Marshall Bancorp shares are owned by institutional investors. 5.9% of Banco De Chile shares are owned by company insiders. Comparatively, 12.6% of John Marshall Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Banco De Chile beats John Marshall Bancorp on 9 of the 17 factors compared between the two stocks.

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.

About John Marshall Bancorp

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including charter and private schools, government contractors, health services, nonprofits and associations, professional services, property management companies and title companies