Contrasting China Minsheng (OTCMKTS:CMAKY) and Bank of China (OTCMKTS:BACHY)

Bank of China (OTCMKTS:BACHY) and China Minsheng (OTCMKTS:CMAKY) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bank of China	18.97%	8.17%	0.68%
China Minsheng	11.40%	4.78%	0.41%

Valuation and Earnings

This table compares Bank of China and China Minsheng”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of China	$174.63 billion	0.97	$33.08 billion	$2.60	5.54
China Minsheng	$37.47 billion	0.71	$4.49 billion	$0.87	7.01

Bank of China has higher revenue and earnings than China Minsheng. Bank of China is trading at a lower price-to-earnings ratio than China Minsheng, indicating that it is currently the more affordable of the two stocks.

Dividends

Bank of China pays an annual dividend of $0.61 per share and has a dividend yield of 4.2%. China Minsheng pays an annual dividend of $0.12 per share and has a dividend yield of 2.0%. Bank of China pays out 23.5% of its earnings in the form of a dividend. China Minsheng pays out 13.8% 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.

Risk and Volatility

Bank of China has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, China Minsheng has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Bank of China and China Minsheng, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of China	0	1	0	1	3.00
China Minsheng	0	0	0	0	0.00

Summary

Bank of China beats China Minsheng on 10 of the 13 factors compared between the two stocks.

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.

About China Minsheng

China Minsheng Banking Corp., Ltd. provides banking products and services for individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit books and certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, micro-credit products for individuals, medium and long term, and short-term working capital loans; and debit and credit cards. In addition, it provides appointed and domestic remittance, payment and collection agent, clearing, safe deposit boxes, VIP, and salary and welfare agent card services, as well as internet, mobile, telephone, and self-serve banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; individual forex settlement, forex remittance, travelers promissory notes, collection, individual deposit certificate, and guarantee letter products; and comprehensive credit granting, forex settlement and sale, financial product investment, asset management, and trust financing services. Additionally, it provides convenient finance and investment banking services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company operates through branch-level institutions, business outlets, community sub-branches, and small business sub-branches. China Minsheng Banking Corp., Ltd. was incorporated in 1996 and is headquartered in Beijing, the People's Republic of China.