Grupo Supervielle (NYSE:SUPV – Get Free Report) and China Merchants Bank (OTCMKTS:CIHKY – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Profitability
This table compares Grupo Supervielle and China Merchants Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grupo Supervielle | 4.08% | 6.82% | 1.16% |
| China Merchants Bank | 31.42% | 12.50% | 1.23% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Grupo Supervielle and China Merchants Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grupo Supervielle | 0 | 1 | 1 | 0 | 2.50 |
| China Merchants Bank | 0 | 0 | 0 | 0 | 0.00 |
Dividends
Grupo Supervielle pays an annual dividend of $0.19 per share and has a dividend yield of 2.4%. China Merchants Bank pays an annual dividend of $1.18 per share and has a dividend yield of 3.9%. Grupo Supervielle pays out 28.8% of its earnings in the form of a dividend. China Merchants Bank pays out 30.1% 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 & Volatility
Grupo Supervielle has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, China Merchants Bank has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.
Earnings and Valuation
This table compares Grupo Supervielle and China Merchants Bank”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grupo Supervielle | $2.05 billion | 0.34 | $114.94 million | $0.66 | 11.90 |
| China Merchants Bank | $69.20 billion | 2.21 | $20.64 billion | $3.92 | 7.74 |
China Merchants Bank has higher revenue and earnings than Grupo Supervielle. China Merchants Bank is trading at a lower price-to-earnings ratio than Grupo Supervielle, indicating that it is currently the more affordable of the two stocks.
Summary
China Merchants Bank beats Grupo Supervielle on 8 of the 14 factors compared between the two stocks.
About Grupo Supervielle
Grupo Supervielle S.A., a financial services holding company, provides various banking products and services in Argentina. The company operates through Personal & Business Banking, Corporate Banking, Bank Treasury, Consumer Finance, Insurance, and Asset Management and Other Services segments. It offers savings accounts, time and demand deposits, and checking accounts; various loan products, including personal, consumer, mortgage, unsecured, and car loans; overdrafts; loans with special facilities for project and working capital financing; and leasing, bank guarantees for tenants, salary advances, domestic and international factoring, international guarantees and letters of credit, payroll payment plans, credit and debit cards, and senior citizens benefit payment services, as well as financial services and investments, such as mutual funds and guarantees. The company also provides foreign trade and cash management; advisory services; treasury services; insurance products comprising life, home, personal accidents, technology, ATMs, protected bag, and protected content; and asset management and other services, as well as operates as a digital online broker. It operates through a network of bank branches, ATMs, and self-service terminals, as well as ATMs with biometric identification. The company was formerly known as Inversiones y Participaciones S.A. and changed its name to Grupo Supervielle S.A. in November 2008. Grupo Supervielle S.A. was founded in 1887 and is based in Buenos Aires, Argentina.
About China Merchants Bank
China Merchants Bank Co., Ltd., together with its subsidiaries, provides various banking products and services. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. The company offers current, demand, time, call, savings, notice, and renminbi accounts. Its loan products include personal commercial real estate, consumption, housing, and car loans; loans to finance for studying abroad; micro-business loans; mortgage loans for equipment; joint guarantee, special guarantee, and housing mortgage loan; bank acceptance, discount, liquid capital, and fixed asset loans; and loans for vessels. The company also offers credit cards; insurance products; open-ended funds; discount and guarantees for commercial bills, redemption of commercial bills, and guaranteed discount for commercial acceptance bills; and financial consultation, debt financing underwriting, merger and acquisition financing, and equity financing and enterprise listing services. In addition, it provides forfeiting and risk participation, escrow, cross-border RMB clearing, and interbank services; and risk and financial management, cross-border RMB and oversea financing, international factoring and settlement, and trade finance services. Further, the company offers financial leasing and guarantee, investment and wealth management, forex option and gold trading, forex express trading, international, offshore and private banking, custody, pension, and electronic banking services. The company also operates in Hong Kong, New York, London, Singapore, Luxembourg, Sydney, and Taipei. China Merchants Bank Co., Ltd. was founded in 1987 and is headquartered in Shenzhen, China.
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