First Hawaiian (NASDAQ:FHB) versus Banco Santander Chile (NYSE:BSAC) Head to Head Analysis

Banco Santander Chile (NYSE:BSAC) and First Hawaiian (NASDAQ:FHB) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Volatility and Risk

Banco Santander Chile has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, First Hawaiian has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Insider & Institutional Ownership

6.4% of Banco Santander Chile shares are held by institutional investors. Comparatively, 97.6% of First Hawaiian shares are held by institutional investors. 0.7% of First Hawaiian shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Banco Santander Chile and First Hawaiian”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Santander Chile	$4.50 billion	3.68	$1.12 billion	$2.62	13.42
First Hawaiian	$1.17 billion	2.68	$276.27 million	$2.30	11.19

Banco Santander Chile has higher revenue and earnings than First Hawaiian. First Hawaiian 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

Banco Santander Chile pays an annual dividend of $1.10 per share and has a dividend yield of 3.1%. First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 4.0%. Banco Santander Chile pays out 42.0% of its earnings in the form of a dividend. First Hawaiian pays out 45.2% 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 Banco Santander Chile and First Hawaiian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Santander Chile	27.04%	22.94%	1.70%
First Hawaiian	24.41%	10.27%	1.19%

Analyst Recommendations

This is a summary of recent ratings and target prices for Banco Santander Chile and First Hawaiian, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Santander Chile	1	3	3	2	2.67
First Hawaiian	3	6	2	0	1.91

Banco Santander Chile currently has a consensus target price of $35.40, suggesting a potential upside of 0.71%. First Hawaiian has a consensus target price of $30.25, suggesting a potential upside of 17.52%. Given First Hawaiian’s higher possible upside, analysts clearly believe First Hawaiian is more favorable than Banco Santander Chile.

Summary

Banco Santander Chile beats First Hawaiian on 12 of the 17 factors compared between the two stocks.

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.

About First Hawaiian

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking products and services to consumer and commercial customers in the United States. It operates in three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company offers various deposit products, including checking, savings, and time deposit accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit and loans, automobile loans and leases, secured and unsecured lines of credit, installment loans, small business loans and leases, and construction lending, as well as commercial lease and auto dealer financing. In addition, the company offers wealth management, personal installment, individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, retirement planning, and merchant processing services, as well as consumer and commercial credit cards. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. First Hawaiian, Inc. was founded in 1858 and is headquartered in Honolulu, Hawaii.