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Itau Corpbanca (NYSE: ITCB) and Royal Bank of Scotland Group (NYSE:RBS) are both
financials companies, but which is the superior business? We will compare the two
companies based on the strength of their dividends, analyst recommendations, institutional
ownership, risk, profitability, earnings and valuation.
Volatility and Risk
Itau Corpbanca has a beta of 1.13, indicating that its stock price is 13% more volatile than
the S&P 500. Comparatively, Royal Bank of Scotland Group has a beta of 1.2, indicating
that its stock price is 20% more volatile than the S&P 500.
Earnings & Valuation
This table compares Itau Corpbanca and Royal Bank of Scotland Group’s gross revenue,
earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Itau Corpbanca $2.27 billion 1.53 $18.72 million $0.14 108.93 Royal Bank of Scotland
Group $20.53 billion 2.38 -$7.13 billion ($0.72) -11.35
Itau Corpbanca has higher earnings, but lower revenue than Royal Bank of Scotland Group.
Royal Bank of Scotland Group is trading at a lower price-to-earnings ratio than Itau
Corpbanca, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Itau Corpbanca and Royal
Bank of Scotland Group, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Itau
Corpbanca 0 1 0 0 2.00 Royal Bank of Scotland Group 1 9 6 0 2.31
Insider and Institutional Ownership
0.7% of Itau Corpbanca shares are owned by institutional investors. Comparatively, 0.5% of
Royal Bank of Scotland Group shares are owned by institutional investors. 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.
Profitability
This table compares Itau Corpbanca and Royal Bank of Scotland Group’s net margins,
return on equity and return on assets.
Net Margins Return on Equity Return on Assets Itau Corpbanca 4.76% 2.26% 0.27%
Royal Bank of Scotland Group -17.46% 7.75% 0.49%
Summary
Royal Bank of Scotland Group beats Itau Corpbanca on 7 of the 12 factors compared
between the two stocks.
About Itau Corpbanca
Itau Corpbanca is a Chile-based financial institution (the Bank) engaged in the banking
sector. The Bank operates in seven segments: Large, Corporate and Real Estate
Companies, which includes companies that belong to major economic groups and specific
industries; Companies, which includes leasing, factoring and other financial services for
business customers; Traditional and Private Banking, which offers checking accounts,
consumer loans, credit cards and mortgage loans; Lower Income Retail Banking,
corresponding to operations of Banco Condell, which offers consumer loans, credit cards
and mortgage loans; Treasury and International, which comprises treasury activities, such
as financial management and funding; Non-Banking Financial Services, which provides
services rendered by its subsidiaries, including insurance brokerage, financial advisory and
securities brokerage, and Colombia, which includes commercial and retail banking services
provided by CorpBanca Colombia and Helm Bank.
About Royal Bank of Scotland Group
The Royal Bank of Scotland Group plc (RBS) is a banking and financial services company.
The Company provides a range of products and services to personal, commercial, corporate
and institutional customers, through its subsidiaries, The Royal Bank of Scotland plc and
National Westminster Bank Plc (NatWest), as well as through other brands, including Ulster
Bank and Coutts. The Company’s segments include Personal & Business Banking (PBB),
Commercial & Private Banking (CPB), NatWest Markets (NWM), Capital Resolution,
Williams & Glyn (W&G), and Central items & other. The Company’s products and services
include banking and risk management, such as payments, insurance and liquidity
management; personal lending, including personal loans and credit cards; deposits, such as
current accounts and savings accounts; investments, such as portfolio management and
unitized funds; commercial lending, including business lending, and capital markets,
including rates, currencies and financing.