Head to Head Analysis: Air China (OTCMKTS:AIRYY) and China Minsheng Banking (OTCMKTS:CMAKY)

Valuation & Earnings

This table compares Air China and China Minsheng Banking”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air China	$21.01 billion	0.52	-$146.93 million	($0.09)	-145.68
China Minsheng Banking	$42.74 billion	0.44	$5.07 billion	$0.91	4.74

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

Risk & Volatility

Air China has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, China Minsheng Banking has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares Air China and China Minsheng Banking’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air China	-0.26%	-1.16%	-0.13%
China Minsheng Banking	11.39%	5.47%	0.46%

Dividends

Air China pays an annual dividend of $0.09 per share and has a dividend yield of 0.7%. China Minsheng Banking pays an annual dividend of $0.25 per share and has a dividend yield of 5.8%. Air China pays out -100.0% of its earnings in the form of a dividend. China Minsheng Banking pays out 27.5% 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.

Summary

China Minsheng Banking beats Air China on 8 of the 11 factors compared between the two stocks.

About Air China

Air China Limited, together with its subsidiaries, provides air passenger, air cargo, and airline-related services in Mainland China, Hong Kong, Macau, Taiwan, China, and internationally. The company operates in Airline Operations and Other Operations segments. It provides aircraft engineering and airport ground handling services. The company is also involved in the import and export trading activities; and provision of cabin, airline catering, air ticketing, human resources, aircraft overhaul and maintenance, and financial services. Air China Limited was founded in 1988 and is headquartered in Beijing, the People's Republic of China.

About China Minsheng Banking

China Minsheng Banking Corp., Ltd. provides banking products and services for individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit books and certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, micro-credit products for individuals, medium and long term, and short-term working capital loans; and debit and credit cards. In addition, it provides appointed and domestic remittance, payment and collection agent, clearing, safe deposit boxes, VIP, and salary and welfare agent card services, as well as internet, mobile, telephone, and self-serve banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; individual forex settlement, forex remittance, travelers promissory notes, collection, individual deposit certificate, and guarantee letter products; and comprehensive credit granting, forex settlement and sale, financial product investment, asset management, and trust financing services. Additionally, it provides convenient finance and investment banking services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company operates through branch-level institutions, business outlets, community sub-branches, and small business sub-branches. China Minsheng Banking Corp., Ltd. was incorporated in 1996 and is headquartered in Beijing, the People's Republic of China.