Contrasting China CITIC Bank (OTCMKTS:CHCJY) & Standard Chartered (OTCMKTS:SCBFF)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Chartered	0	1	1	0	2.50
China CITIC Bank	0	0	0	0	0.00

Dividends

Standard Chartered pays an annual dividend of $0.25 per share and has a dividend yield of 1.1%. China CITIC Bank pays an annual dividend of $0.81 per share and has a dividend yield of 4.3%. Standard Chartered pays out 13.3% of its earnings in the form of a dividend. China CITIC Bank pays out 24.8% 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.

Earnings and Valuation

This table compares Standard Chartered and China CITIC Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Chartered	$41.04 billion	1.21	$4.05 billion	$1.88	11.59
China CITIC Bank	$47.42 billion	0.98	$9.54 billion	$3.27	5.79

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

Risk & Volatility

Standard Chartered has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, China CITIC Bank has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Standard Chartered	12.84%	10.88%	0.65%
China CITIC Bank	20.20%	8.55%	0.72%

Summary

Standard Chartered beats China CITIC Bank on 7 of the 13 factors compared between the two stocks.

About Standard Chartered

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.

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.