Head-To-Head Contrast: Western New England Bancorp (NASDAQ:WNEB) & Banco De Chile (NYSE:BCH)

Western New England Bancorp (NASDAQ:WNEB) and Banco De Chile (NYSE:BCH) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Profitability

This table compares Western New England Bancorp and Banco De Chile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western New England Bancorp	9.51%	5.07%	0.45%
Banco De Chile	32.62%	23.00%	2.51%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Western New England Bancorp and Banco De Chile, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western New England Bancorp	0	2	0	1	2.67
Banco De Chile	0	2	0	0	2.00

Western New England Bancorp presently has a consensus target price of $11.00, suggesting a potential downside of 4.43%. Banco De Chile has a consensus target price of $23.00, suggesting a potential downside of 26.00%. Given Western New England Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe Western New England Bancorp is more favorable than Banco De Chile.

Risk and Volatility

Western New England Bancorp has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Banco De Chile has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Earnings & Valuation

This table compares Western New England Bancorp and Banco De Chile”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western New England Bancorp	$122.74 million	1.92	$11.67 million	$0.59	19.51
Banco De Chile	$3,014.58 billion	0.01	$1.37 billion	$2.81	11.06

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

Dividends

Western New England Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.4%. Banco De Chile pays an annual dividend of $1.57 per share and has a dividend yield of 5.1%. Western New England Bancorp pays out 47.5% of its earnings in the form of a dividend. Banco De Chile pays out 55.9% 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.

Insider and Institutional Ownership

68.0% of Western New England Bancorp shares are owned by institutional investors. Comparatively, 1.2% of Banco De Chile shares are owned by institutional investors. 6.1% of Western New England Bancorp shares are owned by company insiders. Comparatively, 5.9% of Banco De Chile shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Western New England Bancorp beats Banco De Chile on 9 of the 16 factors compared between the two stocks.

About Western New England Bancorp

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides a range of commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including interest-bearing and noninterest-bearing checking, commercial checking, business, nonprofit and municipal checking, savings, money market and sweep, individual retirement, and other savings accounts; time deposits; certificates of deposit; and interest on lawyer's trust accounts. It also offers residential real estate loans, including first mortgages, home equity loans, and home equity lines, and secured by one-to-four family residential properties; commercial and industrial loans, such as letters of credit, revolving lines of credit, working capital, equipment financing, and term loans; commercial mortgage loans; construction and land development loans; home equity loans comprising home equity revolving loans and lines of credit; and consumer loans, including automobile, spa and pool, collateral, and personal lines of credit. In addition, the company provides automated teller machine (ATM), telephone and online banking, remote deposit capture, cash management, overdraft and safe deposit facility, and night deposit services. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. The company was founded in 1853 and is headquartered in Westfield, Massachusetts.

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.