Reviewing Northeast Bancorp (NASDAQ:NBN) and Banco Santander Chile (NYSE:BSAC)

Northeast Bancorp (NASDAQ:NBN) and Banco Santander Chile (NYSE:BSAC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Valuation and Earnings

This table compares Northeast Bancorp 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
Northeast Bancorp	$222.55 million	4.67	$107.48 million	$12.72	9.96
Banco Santander Chile	$2,955.13 billion	0.01	$1.12 billion	$2.62	12.18

Banco Santander Chile has higher revenue and earnings than Northeast Bancorp. Northeast Bancorp 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.

Dividends

Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Banco Santander Chile pays an annual dividend of $1.09 per share and has a dividend yield of 3.4%. Northeast Bancorp pays out 0.3% of its earnings in the form of a dividend. Banco Santander Chile pays out 41.6% 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.

Profitability

This table compares Northeast Bancorp and Banco Santander Chile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northeast Bancorp	27.91%	19.35%	2.22%
Banco Santander Chile	27.04%	22.94%	1.70%

Risk & Volatility

Northeast Bancorp has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Banco Santander Chile has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Northeast Bancorp and Banco Santander Chile, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northeast Bancorp	0	1	2	0	2.67
Banco Santander Chile	1	4	3	1	2.44

Northeast Bancorp presently has a consensus target price of $143.50, indicating a potential upside of 13.32%. Banco Santander Chile has a consensus target price of $35.20, indicating a potential upside of 10.27%. Given Northeast Bancorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Northeast Bancorp is more favorable than Banco Santander Chile.

Institutional and Insider Ownership

6.4% of Banco Santander Chile shares are owned by institutional investors. 14.2% of Northeast Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Northeast Bancorp beats Banco Santander Chile on 9 of the 17 factors compared between the two stocks.

About Northeast Bancorp

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.

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.