Comparing Oversea-Chinese Banking (OTCMKTS:OVCHY) and Bank of Communications (OTCMKTS:BCMXY)

Bank of Communications (OTCMKTS:BCMXY) and Oversea-Chinese Banking (OTCMKTS:OVCHY) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

0.0% of Oversea-Chinese Banking shares are held by institutional investors. 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Bank of Communications and Oversea-Chinese Banking, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Communications	0	0	0	0	0.00
Oversea-Chinese Banking	0	1	0	0	2.00

Dividends

Bank of Communications pays an annual dividend of $0.86 per share and has a dividend yield of 4.2%. Oversea-Chinese Banking pays an annual dividend of $1.13 per share and has a dividend yield of 3.2%. Bank of Communications pays out 22.9% of its earnings in the form of a dividend.

Risk & Volatility

Bank of Communications has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500. Comparatively, Oversea-Chinese Banking has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Valuation and Earnings

This table compares Bank of Communications and Oversea-Chinese Banking”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Communications	$71.22 billion	0.86	$13.30 billion	$3.75	5.52
Oversea-Chinese Banking	$19.55 billion	4.02	$5.68 billion	N/A	N/A

Bank of Communications has higher revenue and earnings than Oversea-Chinese Banking.

Profitability

This table compares Bank of Communications and Oversea-Chinese Banking’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Communications	18.67%	7.64%	0.62%
Oversea-Chinese Banking	N/A	N/A	N/A

Summary

Bank of Communications beats Oversea-Chinese Banking on 6 of the 11 factors compared between the two stocks.

About Bank of Communications

Bank of Communications Co., Ltd. provides commercial banking products and services in China. The company offers savings deposit products, including demand deposits, lump-sum deposits and withdrawal, time deposit of small savings for lump-sum withdrawal, interest withdrawal on principal deposited, time-demand deposit, call deposit, swap management, and education deposit; personal certificate of deposit; salary financing A; and foreign currency deposit. It also provides credit, quasi-credit, and debit cards; new housing and second-hand mortgage loans and unsecured personal loans; personal wealth management advisor services; and precious metal and commodity trading services. In addition, the company offers corporate structured deposit and corporate certificate of deposit; corporate cash management; industrial chain finance program comprising prepayment financing, inventory financing, accounts receivable financing and accounts payable financing; syndicated loans; corporation overdraft; investment banking services; and offshore banking services, such as repayment financing, inventory financing, accounts receivable financing and accounts payable financing, and forex currencies. Further, it provides bond account activation, bond distribution, and transaction services; related bond escrow and settlement, pledge registration, and principal and interest payment services; training and consulting services for cooperative banks; cross-border inter-bank payments system services; consignment sales of precious metal products; bond underwriting distribution; third party bond depository services; bank derivatives transfer; b-share transfer; bankfutures transfer; standard warehouse warrant pledged financing; institutional investment consulting, wealth management, and insurance services; and clearing and settlement services for future markets. The company was founded in 1908 and is headquartered in Shanghai, the People’s Republic of China.

About Oversea-Chinese Banking

Oversea-Chinese Banking Corporation Limited engages in the provision of financial services in Singapore, Malaysia, Indonesia, Greater China, rest of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high-net-worth individuals. Its Global Wholesale Banking segment provides long-term project financing, short-term credit, working capital, and trade financing; customized and structured equity-linked financing products; cash management and custodian services; capital market solutions; corporate finance and advisory banking services; and treasury products. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as structured treasury products and financial solutions. Its Insurance segment provides fund management services, and life and general insurance products. The company's Others segment is involved in property and investment holding activities. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.