Bank of China (OTCMKTS:BACHY) versus Schroders (OTCMKTS:SHNWF) Critical Review

Schroders (OTCMKTS:SHNWF) and Bank of China (OTCMKTS:BACHY) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Volatility & Risk

Schroders has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Bank of China has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500.

Earnings and Valuation

This table compares Schroders and Bank of China”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schroders	$3.65 billion	1.99	$500.79 million	N/A	N/A
Bank of China	$170.70 billion	1.02	$32.77 billion	$2.60	5.67

Bank of China has higher revenue and earnings than Schroders.

Analyst Ratings

This is a summary of current ratings for Schroders and Bank of China, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schroders	0	2	1	0	2.33
Bank of China	0	1	0	1	3.00

Profitability

This table compares Schroders and Bank of China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schroders	N/A	N/A	N/A
Bank of China	17.35%	7.81%	0.65%

Summary

Bank of China beats Schroders on 7 of the 10 factors compared between the two stocks.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm’s alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. The company was formerly known as New Schroders plc and changed its name to Schroders plc in April 2000. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.

About Bank of China

Bank of China Limited, together with its subsidiaries, provides various banking and financial services in Chinese Mainland, Hong Kong, Macao, Taiwan, and internationally. It operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other. The Corporate Banking segment provides current accounts, deposits, overdrafts, loans, payments and settlements, trade-related products, and other credit facilities, as well as foreign currency, derivative, and wealth management products for corporate customers, government authorities, and financial institutions. The Personal Banking segment offers savings deposits, personal loans, credit cards and debit cards, payments and settlements, wealth management, and funds and insurance agency services to retail customers. The Treasury Operations segment offers foreign exchange transactions, customer-based interest rate, and foreign exchange derivative transactions, as well as money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment provides debt and equity underwriting and financial advisory, sale and trading of securities, stock brokerage, investment research, asset management services, and private equity investment services. The Insurance segment provides underwriting services for general and life insurance business, and insurance agency services. In addition, the company operates debt-to-equity swaps and other supporting, and aircraft and financial leasing business. The company was founded in 1912 and is headquartered in Beijing, China.