Contrasting Bank of Communications (OTCMKTS:BCMXY) and Hang Seng Bank (OTCMKTS:HSNGY)

Bank of Communications (OTCMKTS:BCMXY) and Hang Seng Bank (OTCMKTS:HSNGY) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Risk and 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, Hang Seng Bank has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Profitability

This table compares Bank of Communications and Hang Seng Bank’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%
Hang Seng Bank	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings for Bank of Communications and Hang Seng Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Communications	0	0	0	0	0.00
Hang Seng Bank	1	1	0	0	1.50

Valuation & Earnings

This table compares Bank of Communications and Hang Seng Bank”s 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	0.92	$13.30 billion	$3.75	5.87
Hang Seng Bank	$8.63 billion	4.27	$2.36 billion	N/A	N/A

Bank of Communications has higher revenue and earnings than Hang Seng Bank.

Dividends

Bank of Communications pays an annual dividend of $0.86 per share and has a dividend yield of 3.9%. Hang Seng Bank pays an annual dividend of $0.58 per share and has a dividend yield of 2.9%. Bank of Communications pays out 22.9% of its earnings in the form of a dividend.

Summary

Bank of Communications beats Hang Seng Bank on 6 of the 10 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 Hang Seng Bank

Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprises, and institutional customers in Hong Kong, the Mainland of China, and internationally. It operates through five segments: Wealth and Personal Banking, Commercial Banking, Global Banking, Global Markets, and Other. The company offers personal banking services, including current and savings accounts, time deposits, mortgages and personal loans, credit cards, and insurance, investment, and other wealth management services, as well as consumer lending and wealth management services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment services, and corporate wealth management services; general banking and transaction banking, corporate lending, deposits, and cash management services; and tailored solutions and services in foreign exchange, bullion, equities, fixed income, and securities financing, as well as manages the funding and liquidity position activities. In addition, the company offers retirement benefits, life assurance, fund management, and stock broking services, as well as index compilation and licensing; fund raising and sales; and asset management services. It operates service outlets in Hong Kong; branches in Macau and Singapore; and representative office in Taipei, as well as a network of outlets in the Mainland of China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited operates as a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.