Intesa Sanpaolo (OTCMKTS:ISNPY) vs. China Minsheng (OTCMKTS:CMAKY) Head to Head Review

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Intesa Sanpaolo and China Minsheng, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intesa Sanpaolo	0	2	1	1	2.75
China Minsheng	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intesa Sanpaolo	22.05%	13.53%	0.97%
China Minsheng	11.62%	4.72%	0.40%

Dividends

Intesa Sanpaolo pays an annual dividend of $1.68 per share and has a dividend yield of 4.2%. China Minsheng pays an annual dividend of $0.27 per share and has a dividend yield of 4.7%. Intesa Sanpaolo pays out 50.5% of its earnings in the form of a dividend. China Minsheng pays out 29.3% 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.

Risk and Volatility

Intesa Sanpaolo has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, China Minsheng has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intesa Sanpaolo	$48.17 billion	2.45	$9.38 billion	$3.33	11.93
China Minsheng	$37.47 billion	0.67	$4.49 billion	$0.92	6.26

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

Insider & Institutional Ownership

1.2% of Intesa Sanpaolo shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Intesa Sanpaolo beats China Minsheng on 13 of the 15 factors compared between the two stocks.

About Intesa Sanpaolo

Intesa Sanpaolo S.p.A. provides various financial products and services primarily in Italy. It operates through six segments: Banca dei Territori, IMI Corporate & Investment Banking, International Subsidiary Banks, Asset Management, Private Banking, and Insurance. The company offers lending and deposit products; private and commercial banking, corporate and transaction banking, structured finance, investment banking, public finance, and capital markets; industrial credit, leasing, and factoring; asset management; life and non-life insurance and pension products; asset and wealth management; private investments; and bancassurance products. The company serves individuals, small and medium-sized businesses, non-profit customers, corporates and financial institutions, public administration, private clients and high net worth individuals, institutional clientele, and other customers. Intesa Sanpaolo S.p.A. was founded in 1998 and is headquartered in Turin, Italy.

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.