Financial Contrast: First Republic Bank (OTCMKTS:FRCB) and Banco de Chile (NYSE:BCH)

Banco de Chile (NYSE:BCH) and First Republic Bank (OTCMKTS:FRCB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Profitability

This table compares Banco de Chile and First Republic Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco de Chile	30.00%	22.69%	2.30%
First Republic Bank	N/A	N/A	N/A

Dividends

Banco de Chile pays an annual dividend of $1.23 per share and has a dividend yield of 5.4%. First Republic Bank pays an annual dividend of $1.08 per share and has a dividend yield of 25,116.3%. Banco de Chile pays out 44.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Banco de Chile and First Republic Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco de Chile	$3,122.66 billion	0.00	$1.65 billion	$2.79	8.10
First Republic Bank	$6.75 billion	0.00	$1.67 billion	N/A	N/A

First Republic Bank has lower revenue, but higher earnings than Banco de Chile.

Risk & Volatility

Banco de Chile has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, First Republic Bank has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.

Insider & Institutional Ownership

1.2% of Banco de Chile shares are owned by institutional investors. Comparatively, 0.0% of First Republic Bank shares are owned by institutional investors. 5.9% of Banco de Chile shares are owned by company insiders. Comparatively, 0.7% of First Republic Bank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Banco de Chile and First Republic Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco de Chile	0	1	0	0	2.00
First Republic Bank	0	0	0	0	0.00

Banco de Chile currently has a consensus price target of $21.00, suggesting a potential downside of 7.12%. Given Banco de Chile’s stronger consensus rating and higher probable upside, research analysts plainly believe Banco de Chile is more favorable than First Republic Bank.

Summary

Banco de Chile beats First Republic Bank on 9 of the 13 factors compared between the two stocks.

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.

About First Republic Bank

As of May 1, 2023, First Republic Bank went out of business. Previously, First Republic Bank provided private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. The company was founded in 1985 and was headquartered in San Francisco, California. First Republic Bank now trades on OTCPK.