Critical Analysis: Hang Seng Bank (OTCMKTS:HSNGY) and PT Bank Mandiri Persero TBK (OTCMKTS:PPERY)

Hang Seng Bank (OTCMKTS:HSNGY) and PT Bank Mandiri Persero TBK (OTCMKTS:PPERY) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Dividends

Hang Seng Bank pays an annual dividend of $0.59 per share and has a dividend yield of 3.0%. PT Bank Mandiri Persero TBK pays an annual dividend of $0.81 per share and has a dividend yield of 7.8%.

Institutional & Insider Ownership

0.0% of PT Bank Mandiri Persero TBK shares are held by institutional investors. 0.2% of Hang Seng Bank shares are held by insiders. Comparatively, 0.0% of PT Bank Mandiri Persero TBK shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Hang Seng Bank has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, PT Bank Mandiri Persero TBK has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Hang Seng Bank and PT Bank Mandiri Persero TBK, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hang Seng Bank	1	2	0	0	1.67
PT Bank Mandiri Persero TBK	0	0	0	0	0.00

Profitability

This table compares Hang Seng Bank and PT Bank Mandiri Persero TBK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hang Seng Bank	N/A	N/A	N/A
PT Bank Mandiri Persero TBK	N/A	N/A	N/A

Earnings and Valuation

This table compares Hang Seng Bank and PT Bank Mandiri Persero TBK”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hang Seng Bank	$8.63 billion	4.27	$2.36 billion	N/A	N/A
PT Bank Mandiri Persero TBK	$8.58 billion	2.83	$2.79 billion	N/A	N/A

PT Bank Mandiri Persero TBK has lower revenue, but higher earnings than Hang Seng Bank.

About Hang Seng Bank

Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprises, and institutional customers in Hong Kong, the Mainland of China, and internationally. It operates through five segments: Wealth and Personal Banking, Commercial Banking, Global Banking, Global Markets, and Other. The company offers personal banking services, including current and savings accounts, time deposits, mortgages and personal loans, credit cards, and insurance, investment, and other wealth management services, as well as consumer lending and wealth management services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment services, and corporate wealth management services; general banking and transaction banking, corporate lending, deposits, and cash management services; and tailored solutions and services in foreign exchange, bullion, equities, fixed income, and securities financing, as well as manages the funding and liquidity position activities. In addition, the company offers retirement benefits, life assurance, fund management, and stock broking services, as well as index compilation and licensing; fund raising and sales; and asset management services. It operates service outlets in Hong Kong; branches in Macau and Singapore; and representative office in Taipei, as well as a network of outlets in the Mainland of China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited operates as a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.

About PT Bank Mandiri Persero TBK

PT Bank Mandiri (Persero) Tbk provides various banking products and services to individuals and businesses in Indonesia, Singapore, Hong Kong, Timor Leste, Shanghai, Malaysia, the United Kingdom, and the Cayman Islands. The company operates through Wholesale and Retail segments. It offers savings and current accounts, time deposits, demand deposits, and foreign currency savings and current accounts; motorcycle loans, mortgage loan, and housing loans, as well as loans for various purposes, such as education, home renovation, marriage, health, and other needs for individuals; and working capital loans, investment loans, people's business loans, syndicated loans, and micro business loans for businesses. The company also provides investment products comprising mutual funds, stocks, and bonds; life, health, and accident insurance products; credit, debit, and corporate cards; digital banking; e-banking services; digital lending; cash management services; trade finance services, value chain, supply chain management, global and domestic trade, export and import, standby letter of credit, and bank guarantee, as well as spot and forex services; custodial services; treasury services, including cash transaction/liquidity, hedging, and investment products; trust services comprising trustee, paying agent, security agent, escrow agent, monitoring agent, and receiving bank services; and money transfer, remittance services, and venture capital financing. It operates branch offices, sub-branch offices, and overseas branch offices; and ATM facilities. The company was founded in 1998 and is headquartered in Jakarta, Indonesia.