Société Générale Société anonyme (OTCMKTS:SCGLY) versus Banco Itau Chile Spon (NASDAQ:ITCLY) Critical Review

Banco Itau Chile Spon (NASDAQ:ITCLY) and Société Générale Société anonyme (OTCMKTS:SCGLY) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Profitability

This table compares Banco Itau Chile Spon and Société Générale Société anonyme’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Itau Chile Spon	10.54%	10.65%	0.91%
Société Générale Société anonyme	8.35%	3.60%	0.18%

Analyst Recommendations

This is a summary of recent ratings for Banco Itau Chile Spon and Société Générale Société anonyme, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Itau Chile Spon	0	0	0	0	N/A
Société Générale Société anonyme	0	6	0	0	2.00

Earnings and Valuation

This table compares Banco Itau Chile Spon and Société Générale Société anonyme’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Itau Chile Spon	$3.99 billion	0.50	$423.68 million	$0.66	4.70
Société Générale Société anonyme	$27.17 billion	0.71	$2.70 billion	$0.47	10.21

Société Générale Société anonyme has higher revenue and earnings than Banco Itau Chile Spon. Banco Itau Chile Spon is trading at a lower price-to-earnings ratio than Société Générale Société anonyme, indicating that it is currently the more affordable of the two stocks.

Dividends

Banco Itau Chile Spon pays an annual dividend of $0.17 per share and has a dividend yield of 5.5%. Société Générale Société anonyme pays an annual dividend of $0.13 per share and has a dividend yield of 2.7%. Banco Itau Chile Spon pays out 25.8% of its earnings in the form of a dividend. Société Générale Société anonyme pays out 27.7% 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. Banco Itau Chile Spon is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

22.2% of Banco Itau Chile Spon shares are owned by institutional investors. Comparatively, 1.0% of Société Générale Société anonyme shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Banco Itau Chile Spon beats Société Générale Société anonyme on 7 of the 11 factors compared between the two stocks.

About Banco Itau Chile Spon

Banco Ita? Chile provides banking services principally in Chile and Colombia. It provides wholesale and corporate banking; real estate and construction and retail, private, companies and personal banking services, as well as treasury and other financial services. Banco Ita? Chile, formerly known as Ita? Corpbanca, is based in Santiago, Chile.

About Société Générale Société anonyme

Société Générale Société anonyme provides banking and financial services to individuals, corporates, and institutional clients in Europe and internationally. It operates through French Retail Banking, International Retail Banking & Financial Services, and Global Banking and Investor Solutions. It offers retail banking services, such as consumer credit, vehicle leasing and fleet management, online banking, wealth management, and equipment and vendor finance services; and insurance products, including home, vehicle, family, health, and mortgage insurance. The company also provides corporate and investment banking, securities, business consulting, consumer finance, advisory and financing, and asset management and private banking services. In addition, it offers brokerage, cash management, payment, factoring/reverse factoring, export financing, trade finance, cash clearing and correspondent banking, and receivables and supply chain financing services. Société Générale Société anonyme was incorporated in 1864 and is headquartered in Paris, France.