Comparing Chiba Bank (OTCMKTS:CHBAY) and Banco Bilbao Viscaya Argentaria (NYSE:BBVA)

Banco Bilbao Viscaya Argentaria (NYSE:BBVA) and Chiba Bank (OTCMKTS:CHBAY) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Dividends

Banco Bilbao Viscaya Argentaria pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Chiba Bank pays an annual dividend of $1.09 per share and has a dividend yield of 2.0%. Banco Bilbao Viscaya Argentaria pays out 30.5% of its earnings in the form of a dividend. Chiba Bank pays out 26.0% 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Banco Bilbao Viscaya Argentaria and Chiba Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bilbao Viscaya Argentaria	0	3	2	1	2.67
Chiba Bank	0	0	0	0	0.00

Profitability

This table compares Banco Bilbao Viscaya Argentaria and Chiba Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bilbao Viscaya Argentaria	28.43%	17.29%	1.31%
Chiba Bank	20.92%	7.55%	0.41%

Earnings & Valuation

This table compares Banco Bilbao Viscaya Argentaria and Chiba Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bilbao Viscaya Argentaria	$41.77 billion	3.13	$11.89 billion	$1.97	11.52
Chiba Bank	$2.38 billion	3.73	$490.11 million	$4.20	13.10

Banco Bilbao Viscaya Argentaria has higher revenue and earnings than Chiba Bank. Banco Bilbao Viscaya Argentaria is trading at a lower price-to-earnings ratio than Chiba Bank, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

3.0% of Banco Bilbao Viscaya Argentaria shares are owned by institutional investors. 0.0% of Banco Bilbao Viscaya Argentaria shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Banco Bilbao Viscaya Argentaria has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Chiba Bank has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Summary

Banco Bilbao Viscaya Argentaria beats Chiba Bank on 12 of the 16 factors compared between the two stocks.

About Banco Bilbao Viscaya Argentaria

Banco Bilbao Vizcaya Argentaria, S.A. provides retail banking, wholesale banking, and asset management services in the United States, Spain, Mexico, Turkey, South America, and internationally. The company offers savings account, demand deposits, and time deposits; and loan products, such as residential mortgages, other households, credit card loans, loans to enterprises and public sector, as well as consumer finance. It provides insurance and asset management business, including corporate, commercial, SME, payment systems, retail, private and investment banking, pension and life insurance, leasing, factoring, and brokerage. The company provides its products through online and mobile channels. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.

About Chiba Bank

The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.