Analyzing Axos Financial (NYSE:AX) & Banco De Chile (NYSE:BCH)

Axos Financial (NYSE:AX) and Banco De Chile (NYSE:BCH) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

83.8% of Axos Financial shares are owned by institutional investors. Comparatively, 1.2% of Banco De Chile shares are owned by institutional investors. 4.3% of Axos Financial shares are owned by insiders. Comparatively, 5.9% of Banco De Chile shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Axos Financial and Banco De Chile”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axos Financial	$1.46 billion	3.51	$490.37 million	$8.47	10.66
Banco De Chile	$3.89 billion	5.13	$1.30 billion	$2.64	14.99

Banco De Chile has higher revenue and earnings than Axos Financial. Axos Financial 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.

Volatility and Risk

Axos Financial has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Banco De Chile has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Axos Financial and Banco De Chile, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axos Financial	0	2	5	1	2.88
Banco De Chile	1	4	0	0	1.80

Axos Financial currently has a consensus price target of $115.67, suggesting a potential upside of 28.14%. Banco De Chile has a consensus price target of $39.67, suggesting a potential upside of 0.25%. Given Axos Financial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Axos Financial is more favorable than Banco De Chile.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Axos Financial	22.39%	16.96%	1.77%
Banco De Chile	31.01%	21.10%	2.26%

Summary

Banco De Chile beats Axos Financial on 8 of the 15 factors compared between the two stocks.

About Axos Financial

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through two segments, Banking Business and Securities Business. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides residential single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text message banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.

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.