Commerzbank (OTCMKTS:CRZBY) versus China Minsheng (OTCMKTS:CMAKY) Head-To-Head Comparison

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

Volatility & Risk

Commerzbank has a beta of 0.69, suggesting that its stock price is 31% 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.

Earnings & Valuation

This table compares Commerzbank and China Minsheng”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerzbank	$25.96 billion	1.95	$2.90 billion	$2.25	18.97
China Minsheng	$37.47 billion	0.63	$4.49 billion	$0.87	6.22

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Commerzbank and China Minsheng, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerzbank	0	3	1	0	2.25
China Minsheng	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Commerzbank	10.51%	7.57%	0.48%
China Minsheng	11.40%	4.78%	0.41%

Dividends

Commerzbank pays an annual dividend of $0.52 per share and has a dividend yield of 1.2%. China Minsheng pays an annual dividend of $0.12 per share and has a dividend yield of 2.2%. Commerzbank pays out 23.1% 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. China Minsheng is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Commerzbank beats China Minsheng on 8 of the 13 factors compared between the two stocks.

About Commerzbank

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

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.