Bank of Communications (OTCMKTS:BCMXY) and L’Oréal (OTCMKTS:LRLCY) Head to Head Comparison

Bank of Communications (OTCMKTS:BCMXY) and L’Oréal (OTCMKTS:LRLCY) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Insider & Institutional Ownership

0.4% of L’Oréal shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Bank of Communications has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, L’Oréal has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Bank of Communications and L’Oréal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Communications	0	0	0	0	N/A
L’Oréal	1	0	3	0	2.50

Dividends

Bank of Communications pays an annual dividend of $1.13 per share and has a dividend yield of 6.7%. L’Oréal pays an annual dividend of $1.02 per share and has a dividend yield of 1.1%. Bank of Communications pays out 27.6% of its earnings in the form of a dividend.

Profitability

This table compares Bank of Communications and L’Oréal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Communications	17.24%	8.84%	0.68%
L’Oréal	N/A	N/A	N/A

Earnings & Valuation

This table compares Bank of Communications and L’Oréal’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Communications	$77.53 billion	0.65	$13.69 billion	$4.09	4.12
L’Oréal	$44.57 billion	5.76	$6.69 billion	N/A	N/A

Bank of Communications has higher revenue and earnings than L’Oréal.

Summary

Bank of Communications beats L’Oréal on 6 of the 11 factors compared between the two stocks.

About Bank of Communications

Bank of Communications Co., Ltd. provides commercial banking products and services. It offers personal deposit products including savings, and personal certificate and structured deposits; personal loan, consumption, housing, mortgage loan, commercial housing, and business loans; and debit and credit card services. The company also provides investment services, which includes funds, insurance, financial products, trust, asset management, and precious metals and commodities trading services, as well as operates banking securities and future business; exclusive services, such as ward fortune, salary payment, community finance, value-added, and junior finance. In addition, it offers foreign exchange services comprising personal foreign exchange settlement and sale, exchange trading, and international money transfer services, as well as cross-border study abroad finance, and business travel services. Further, the company provides business banking services, which includes deposit wealth and cash management, industry chain and government, auto, and shipping finance, as well as investment banking, asset custody, and enterprise annuity account management services; and basic, online and international trade finance, and billing services. It also offers international business services, such as cross-border, exchange rate management, foreign exchange wealth management, international settlement, trade finance, letter of credit, and correspondent banking, as well as operates domestic and overseas linkage, and electronic business. Additionally, it provides bond underwriting, and equity financing and supporting M&A advisory and financing services; offshore and trust business services; leasing services; consignment financial management services; and operates bank-securities, insurance, non-banking financial institution, financial market, money and bond market, forex, and derivatives. The company was founded in 1908 and is headquartered in Shanghai, the People's Republic of China.

About L’Oréal

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Dermatological Beauty. It offers skincare, make-up, hair colourants, haircare, perfumes, and hygiene products. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Dark & Lovely, Mixa, Magic Mask, Niley, Lancôme, Yves Saint Laurent, Armani, Kiehl's Since 1851, Helena Rubinstein, Biotherm, Shu Uemura, IT Cosmetics, Ralph Lauren Fragrance, Urban Decay, Mugler, Valentino, Viktor&Rolf, Azzaro, Prada, Cacharel, Maison Margela Fragrance, Diesel, Yue Sai, Atelier Colonge, Carita, Takami, Aesop, L'Oréal Professionnel Paris, Kérastase, Redken, Matrix, Pureology, Pulp Riot, La Roche-Posay, Vichy, CeraVe, SkinCeuticals, and Skinbetter Science brands. It sells its products through distribution channels, such as hair salons, local stores, e-commerce, travel retail, mass market retail, department store perfumeries, pharmacies, drug stores, medi-spas, and free-standing stores. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.