Contrasting Macro Bank (NYSE:BMA) & China CITIC Bank (OTCMKTS:CHCJY)

Macro Bank (NYSE:BMA) and China CITIC Bank (OTCMKTS:CHCJY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Macro Bank	$4.49 billion	0.76	$358.05 million	$11.41	4.65
China CITIC Bank	$47.42 billion	N/A	$9.54 billion	$3.27	5.22

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

Dividends

Macro Bank pays an annual dividend of $3.66 per share and has a dividend yield of 6.9%. China CITIC Bank pays an annual dividend of $0.73 per share and has a dividend yield of 4.3%. Macro Bank pays out 32.1% of its earnings in the form of a dividend. China CITIC Bank pays out 22.3% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Macro Bank	8.32%	10.99%	2.90%
China CITIC Bank	19.59%	8.44%	0.72%

Risk & Volatility

Macro Bank has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, China CITIC Bank has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Macro Bank and China CITIC Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macro Bank	1	4	2	1	2.38
China CITIC Bank	0	0	0	0	0.00

Macro Bank currently has a consensus target price of $66.63, suggesting a potential upside of 25.51%. Given Macro Bank’s stronger consensus rating and higher possible upside, analysts plainly believe Macro Bank is more favorable than China CITIC Bank.

Summary

Macro Bank beats China CITIC Bank on 9 of the 14 factors compared between the two stocks.

About Macro Bank

Banco Macro S.A. provides various banking products and services to retail and corporate customers in Argentina. It offers various retail banking products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines, and money transfers. The company also provides personal loans, document discounts, residential mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services, including deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services; and trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; and working capital facilities, credit for investment projects, and leasing and foreign trade transactions. Further, the company provides transaction services, such as cash management, collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; information services comprising Datanet and Interpymes services to corporate customers; and Internet and mobile banking services. Additionally, it offers short-term and medium-to-long-term corporate lending products. Banco Macro S.A. was incorporated in 1966 and is headquartered in Buenos Aires, Argentina.

About China CITIC Bank

China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.