Critical Survey: China Construction Bank (OTCMKTS:CICHY) & BOC Hong Kong (OTCMKTS:BHKLY)

China Construction Bank (OTCMKTS:CICHY) and BOC Hong Kong (OTCMKTS:BHKLY) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Profitability

This table compares China Construction Bank and BOC Hong Kong’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Construction Bank	26.72%	9.70%	0.77%
BOC Hong Kong	N/A	N/A	N/A

Risk & Volatility

China Construction Bank has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, BOC Hong Kong has a beta of -0.08, meaning that its share price is 108% less volatile than the S&P 500.

Dividends

China Construction Bank pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. BOC Hong Kong pays an annual dividend of $2.88 per share and has a dividend yield of 2.4%. China Construction Bank pays out 21.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares China Construction Bank and BOC Hong Kong”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Construction Bank	$181.98 billion	1.57	$47.15 billion	$3.66	5.95
BOC Hong Kong	$20.46 billion	3.09	$5.15 billion	N/A	N/A

China Construction Bank has higher revenue and earnings than BOC Hong Kong.

Analyst Ratings

This is a breakdown of current recommendations and price targets for China Construction Bank and BOC Hong Kong, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Construction Bank	0	1	0	0	2.00
BOC Hong Kong	0	0	1	0	3.00

Summary

China Construction Bank beats BOC Hong Kong on 7 of the 11 factors compared between the two stocks.

About China Construction Bank

China Construction Bank Corporation provides various banking and related financial services to individuals and corporate customers in the People's Republic of China and internationally. It operates through Corporate Finance Business, Personal Finance Business, Treasury and Asset Management Business, and Others segments. The company accepts various deposits, such as foreign currency, all in one accounts, RMB, corporate term and notification, and corporate demand deposits, as well corporate deposits by agreement. Its loan products include personal business, car, and housing loans; and SME, traditional credit, commercial draft, buyer credit, and RMB credit line loans. The company also offers credit cards; physical gold for personal investment and personal gold accounts; foreign exchange services; certificate treasury and savings bonds, securities deposit accounts, and securities services, as well as bank-securities transfer and book-entry treasury bond over the counter transaction services; and wealth management products. In addition, it provides collection, salaries payment, third-party collection and payment, insurance agency, and remittance services; international settlement and financing, and FI services; securities and fund settlement services; guarantee-based, consulting and advising, and factoring services; fund custody services; and e-banking services. Further, the company offers institutional services comprising services for government agencies, social security, banks cooperation, bank-securities cooperation, bank-insurance cooperation, and services for non-banking financial institutions. China Construction Bank Corporation was founded in 1954 and is headquartered in Beijing, the People's Republic of China.

About BOC Hong Kong

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, China, and internationally. The company operates through four segments: Personal Banking, Corporate Banking, Treasury, and Insurance. It offers savings, current, and time deposit accounts; mortgage plans; corporate deposits, and payroll and e-cheques services. The company also offers cross-border financial and remittance services; and securities, funds, foreign exchange services, precious metals and FX margin services, currency linked investments, bonds, market information services, monthly savings plans, and structured products, as well as business and personal loans. In addition, it provides business and accident protection, medical, travel and leisure, family protection, RMB, and personal life insurance products; and credit cards. Further, the company offers safe deposit box, e-bill, and payment services; personal and corporate RMB, and RMB clearing bank services; business comprehensive, property, liability, group, and retailer comprehensive insurance plans; small business, asset-pledge, and syndicated loans; accounts receivable, machinery and equipment, SME green, and project financing; cross-border services for corporate customers; business banking, trade finance and services, investment, treasury, corporate collection and payment, e-commerce, and card services; and custody and cash management services. Additionally, it provides wealth management and overdraft services; mandatory provident fund schemes; and private and corporate banking services, as well as internet, phone, and mobile banking services; and trade related products and other credit facilities. BOC Hong Kong (Holdings) Limited was founded in 1917 and is based in Central, Hong Kong. BOC Hong Kong (Holdings) Limited operates as a subsidiary of BOC Hong Kong (BVI) Limited.