Grupo Aval Acciones y Valores (NYSE:AVAL – Get Rating) and Banco Itaú Chile (NYSE:ITCL – Get Rating) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Grupo Aval Acciones y Valores and Banco Itaú Chile, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grupo Aval Acciones y Valores | 0 | 0 | 0 | 0 | N/A |
| Banco Itaú Chile | 0 | 0 | 0 | 0 | N/A |
Risk and Volatility
Dividends
Grupo Aval Acciones y Valores pays an annual dividend of $0.17 per share and has a dividend yield of 7.3%. Banco Itaú Chile pays an annual dividend of $0.17 per share and has a dividend yield of 4.8%. Grupo Aval Acciones y Valores pays out 68.0% of its earnings in the form of a dividend. Banco Itaú Chile pays out 24.3% 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.
Institutional and Insider Ownership
0.3% of Grupo Aval Acciones y Valores shares are owned by institutional investors. Comparatively, 0.2% of Banco Itaú Chile shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Grupo Aval Acciones y Valores and Banco Itaú Chile’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grupo Aval Acciones y Valores | $16,394.94 billion | 0.00 | $496.58 million | $0.25 | 9.32 |
| Banco Itaú Chile | $2.94 billion | 0.78 | $487.62 million | $0.70 | 5.01 |
Grupo Aval Acciones y Valores has higher revenue and earnings than Banco Itaú Chile. Banco Itaú Chile is trading at a lower price-to-earnings ratio than Grupo Aval Acciones y Valores, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Grupo Aval Acciones y Valores and Banco Itaú Chile’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grupo Aval Acciones y Valores | 4.63% | 6.99% | 0.74% |
| Banco Itaú Chile | 11.23% | 12.85% | 1.04% |
About Grupo Aval Acciones y Valores
Grupo Aval Acciones y Valores S.A. provides a range of financial services and products to public and private sector customers in Colombia and Central America. It offers traditional deposit services and products, including checking accounts, savings accounts, time deposits, and other deposits. The company also provides commercial loans comprising general purpose loans, working capital loans, leases, loans funded by development banks, corporate credit cards, and overdraft loans; consumer loans, such as payroll loans, personal loans, automobile and other vehicle loans, credit cards, overdrafts, leases, and general purpose loans; and microcredit and mortgage loans. In addition, the company offers pension and severance fund management services; investment banking, including services relating to capital markets, mergers and acquisitions, and project finance transactions; mobile and online banking services; and bancassurance, insurance, trust, bonded warehousing and brokerage transactions, real estate escrow services, merchandise and document storage and deposit, customs agency, cargo management, surety bond and merchandise distribution services, and payment and collection services. Further, it is involved in equity investments in various sectors, including infrastructure, energy and gas, agribusiness, and hospitality; and treasury operations. The company was incorporated in 1994 and is headquartered in Bogotá, Colombia.
About Banco Itaú Chile
Banco Itau Chile engages in the provision of banking and financial services. It specializes in banking products such as financing, leasing, loans, insurance and credit cards. It operates through the following geographical segments: Chile and Colombia. The Chile segment consists of commercial and corporate banking, real estate and construction, large companies, retail banking, personal banking, small business, retail companies, Banco Condell consumer banking, international and treasury and other financial services. The Colombia segment offers commercial and retail banking and treasury and international business operations. The company was founded in 1871 and is headquartered in Las Condes, Chile.
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