Head to Head Analysis: Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) and Bank of China (OTCMKTS:BACHY)

Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) and Bank of China (OTCMKTS:BACHY) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Risk & Volatility

Svenska Handelsbanken Ab Publ has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Bank of China has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Svenska Handelsbanken Ab Publ and Bank of China, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Svenska Handelsbanken Ab Publ	2	5	0	0	1.71
Bank of China	0	1	0	1	3.00

Earnings and Valuation

This table compares Svenska Handelsbanken Ab Publ and Bank of China”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Svenska Handelsbanken Ab Publ	$17.44 billion	N/A	$2.60 billion	$0.61	11.36
Bank of China	$174.63 billion	0.98	$33.08 billion	$2.57	5.67

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

Profitability

This table compares Svenska Handelsbanken Ab Publ and Bank of China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Svenska Handelsbanken Ab Publ	15.97%	12.80%	0.68%
Bank of China	19.65%	7.81%	0.66%

Dividends

Svenska Handelsbanken Ab Publ pays an annual dividend of $0.60 per share and has a dividend yield of 8.7%. Bank of China pays an annual dividend of $0.55 per share and has a dividend yield of 3.8%. Svenska Handelsbanken Ab Publ pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bank of China pays out 21.4% of its earnings in the form of a dividend.

Summary

Bank of China beats Svenska Handelsbanken Ab Publ on 7 of the 12 factors compared between the two stocks.

About Svenska Handelsbanken Ab Publ

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.

About Bank of China

Bank of China Limited, together with its subsidiaries, provides various banking and financial services in Chinese Mainland, Hong Kong, Macao, Taiwan, and internationally. It operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other. The Corporate Banking segment provides current accounts, deposits, overdrafts, loans, payments and settlements, trade-related products, and other credit facilities, as well as foreign currency, derivative, and wealth management products for corporate customers, government authorities, and financial institutions. The Personal Banking segment offers savings deposits, personal loans, credit cards and debit cards, payments and settlements, wealth management, and funds and insurance agency services to retail customers. The Treasury Operations segment offers foreign exchange transactions, customer-based interest rate, and foreign exchange derivative transactions, as well as money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment provides debt and equity underwriting and financial advisory, sale and trading of securities, stock brokerage, investment research, asset management services, and private equity investment services. The Insurance segment provides underwriting services for general and life insurance business, and insurance agency services. In addition, the company operates debt-to-equity swaps and other supporting, and aircraft and financial leasing business. The company was founded in 1912 and is headquartered in Beijing, China.