Analyzing Bank of China (OTCMKTS:BACHY) & BNP Paribas (OTCMKTS:BNPQY)

Bank of China (OTCMKTS:BACHY) and BNP Paribas (OTCMKTS:BNPQY) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Volatility & Risk

Bank of China has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500. Comparatively, BNP Paribas has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Institutional and Insider Ownership

1.2% of BNP Paribas shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Bank of China and BNP Paribas”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of China	$169.73 billion	1.26	$33.81 billion	$2.57	6.45
BNP Paribas	$57.94 billion	2.04	$13.83 billion	$6.23	8.63

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

Dividends

Bank of China pays an annual dividend of $0.55 per share and has a dividend yield of 3.3%. BNP Paribas pays an annual dividend of $2.19 per share and has a dividend yield of 4.1%. Bank of China pays out 21.4% of its earnings in the form of a dividend. BNP Paribas pays out 35.2% 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.

Profitability

This table compares Bank of China and BNP Paribas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of China	20.09%	7.81%	0.67%
BNP Paribas	23.86%	9.61%	0.44%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Bank of China and BNP Paribas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of China	0	1	0	0	2.00
BNP Paribas	0	4	3	0	2.43

Summary

BNP Paribas beats Bank of China on 10 of the 14 factors compared between the two stocks.

About Bank of China

Bank of China Limited, together with its subsidiaries, provides various banking and financial services in Chinese Mainland, Hong Kong, Macao, Taiwan, and internationally. It operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other. The Corporate Banking segment provides current accounts, deposits, overdrafts, loans, payments and settlements, trade-related products, and other credit facilities, as well as foreign currency, derivative, and wealth management products for corporate customers, government authorities, and financial institutions. The Personal Banking segment offers savings deposits, personal loans, credit cards and debit cards, payments and settlements, wealth management, and funds and insurance agency services to retail customers. The Treasury Operations segment offers foreign exchange transactions, customer-based interest rate, and foreign exchange derivative transactions, as well as money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment provides debt and equity underwriting and financial advisory, sale and trading of securities, stock brokerage, investment research, asset management services, and private equity investment services. The Insurance segment provides underwriting services for general and life insurance business, and insurance agency services. In addition, the company operates debt-to-equity swaps and other supporting, and aircraft and financial leasing business. The company was founded in 1912 and is headquartered in Beijing, China.

About BNP Paribas

BNP Paribas SA provides various banking and financial products and services in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through three divisions: Corporate & Institutional Banking; Commercial, Personal Banking & Services; and Investment & Protection Services. The Corporate & Institutional Banking division offers capital market, securities, investment banking, financing, risk management, cash management, and financial advisory services for corporate clients and institutional investors. The Commercial, Personal Banking & Services division provides financing and equipment leasing services, mobility, and digital banking services, as well as current accounts, savings products, bancassurance, insurance products and services, and consumer loans. The Investment & Protection Services division provides protection, savings, investment, and real estate services to support individuals, professionals, corporate clients, and institutions. The company was formerly known as Banque Nationale de Paris and changed its name to BNP Paribas SA in May 2000. BNP Paribas SA was founded in 1822 and is headquartered in Paris, France.