Marlin Business Services (NASDAQ: MRLN) and Banco Santander-Chile (NYSE:BSAC) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Earnings & Valuation

This table compares Marlin Business Services and Banco Santander-Chile’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marlin Business Services $119.05 million 2.82 $25.29 million $2.01 13.41
Banco Santander-Chile $4.14 billion 3.58 $915.64 million $1.86 16.90

Banco Santander-Chile has higher revenue and earnings than Marlin Business Services. Marlin Business Services 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.

Profitability

This table compares Marlin Business Services and Banco Santander-Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marlin Business Services 22.74% 11.48% 1.92%
Banco Santander-Chile 20.98% 18.00% 1.51%

Risk & Volatility

Marlin Business Services has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Banco Santander-Chile has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Marlin Business Services and Banco Santander-Chile, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marlin Business Services 0 0 2 0 3.00
Banco Santander-Chile 1 4 0 0 1.80

Marlin Business Services currently has a consensus target price of $29.00, indicating a potential upside of 7.61%. Banco Santander-Chile has a consensus target price of $28.00, indicating a potential downside of 10.94%. Given Marlin Business Services’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Marlin Business Services is more favorable than Banco Santander-Chile.

Institutional & Insider Ownership

79.5% of Marlin Business Services shares are held by institutional investors. Comparatively, 16.8% of Banco Santander-Chile shares are held by institutional investors. 6.9% of Marlin Business Services shares are held by company insiders. 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.

Dividends

Marlin Business Services pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. Banco Santander-Chile pays an annual dividend of $0.85 per share and has a dividend yield of 2.7%. Marlin Business Services pays out 27.9% of its earnings in the form of a dividend. Banco Santander-Chile pays out 45.7% 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.

Summary

Marlin Business Services beats Banco Santander-Chile on 10 of the 16 factors compared between the two stocks.

About Marlin Business Services

Marlin Business Services Corp. is a bank holding company and a financial holding company. The Company is a provider of credit products and services to small businesses. The Company provides products and services to its customers, which include loans and leases for the acquisition of commercial equipment, working capital loans, and insurance products. The Company accesses its end user customers primarily through origination sources consisting of independent commercial equipment dealers, various national account programs, through direct solicitation of its end user customers, and through relationships with select lease and loan brokers. The Company uses both a telephonic direct sales model and, for strategic larger accounts, outside sales executives to market to its origination sources and end user customers. Through these origination sources, the Company accesses end user customers while also helping its origination sources obtain financing for their customers.

About Banco Santander-Chile

Banco Santander-Chile (the Bank), formerly Banco Santander Chile, is a Chilean bank. The Bank’s segments include Retail banking, Middle-market, Global Corporate Banking and Corporate Activities (Other). The Retail Banking segment consists of individuals and small to middle-sized entities (SMEs). The Middle-market segment serves companies and large corporations. The Global Corporate Banking segment consists of foreign and domestic multinational companies. The Corporate Activities segment includes its Financial Management Division, which develops global management functions. It provides a range of commercial and retail banking services to its customers, including Chilean peso and foreign currency denominated loans to finance a range of commercial transactions, trade, foreign currency forward contracts and credit lines and a range of retail banking services, including mortgage financing. In addition to its traditional banking operations, the Bank offers a range of financial services.

Receive News & Ratings for Marlin Business Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Marlin Business Services and related companies with MarketBeat.com's FREE daily email newsletter.