Critical Contrast: Banco Do Brasil (OTCMKTS:BDORY) versus China Minsheng (OTCMKTS:CMAKY)

Banco Do Brasil (OTCMKTS:BDORY) and China Minsheng (OTCMKTS:CMAKY) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

0.0% of Banco Do Brasil shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Banco Do Brasil pays an annual dividend of $0.03 per share and has a dividend yield of 0.7%. China Minsheng pays an annual dividend of $0.19 per share and has a dividend yield of 4.3%. Banco Do Brasil pays out 7.3% of its earnings in the form of a dividend. China Minsheng pays out 22.1% 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 current recommendations for Banco Do Brasil and China Minsheng, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Do Brasil	1	2	0	0	1.67
China Minsheng	0	1	0	0	2.00

Profitability

This table compares Banco Do Brasil and China Minsheng’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Do Brasil	3.34%	9.07%	0.69%
China Minsheng	11.70%	4.23%	0.38%

Earnings and Valuation

This table compares Banco Do Brasil and China Minsheng”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Do Brasil	$66.83 billion	0.36	$2.45 billion	$0.41	10.29
China Minsheng	$33.55 billion	0.57	$4.25 billion	$0.86	5.12

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

Risk and Volatility

Banco Do Brasil has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, China Minsheng has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Summary

Banco Do Brasil beats China Minsheng on 7 of the 13 factors compared between the two stocks.

About Banco Do Brasil

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasa­lia, Brazil.

About China Minsheng

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.