Banco Itau Chile Spon (NASDAQ:ITCLY) & Freedom Financial (OTCMKTS:FDVA) Financial Analysis

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

Institutional and Insider Ownership

22.2% of Banco Itau Chile Spon shares are held by institutional investors. 13.3% of Freedom Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Banco Itau Chile Spon and Freedom Financial’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%
Freedom Financial	3.53%	2.92%	0.21%

Valuation and Earnings

This table compares Banco Itau Chile Spon and Freedom Financial’s gross revenue, earnings per share (EPS) 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
Freedom Financial	$60.42 million	1.06	$2.32 million	$0.34	28.68

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

Analyst Ratings

This is a summary of recent ratings and target prices for Banco Itau Chile Spon and Freedom Financial, 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
Freedom Financial	0	0	0	0	N/A

Summary

Banco Itau Chile Spon beats Freedom Financial on 7 of the 10 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 Freedom Financial

Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.