Critical Contrast: Bank of Communications (BCMXY) versus Its Competitors

Risk and Volatility

Bank of Communications has a beta of -0.14, meaning that its share price is 114% less volatile than the S&P 500. Comparatively, Bank of Communications’ rivals have a beta of 0.77, meaning that their average share price is 23% less volatile than the S&P 500.

Dividends

Bank of Communications pays an annual dividend of $1.10 per share and has a dividend yield of 5.5%. Bank of Communications pays out 27.4% of its earnings in the form of a dividend. As a group, “BANKS – FOREIGN” companies pay a dividend yield of 3.9% and pay out 38.6% of their earnings in the form of a dividend. Bank of Communications is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Bank of Communications and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bank of Communications	$75.42 billion	$13.02 billion	5.01
Bank of Communications Competitors	$72.92 billion	$6.87 billion	10.39

Bank of Communications has higher revenue and earnings than its rivals. Bank of Communications is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

20.6% of shares of all “BANKS – FOREIGN” companies are held by institutional investors. 5.6% of shares of all “BANKS – FOREIGN” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Bank of Communications and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Communications	17.61%	8.23%	0.64%
Bank of Communications Competitors	16.63%	12.94%	1.07%

Summary

Bank of Communications rivals beat Bank of Communications on 6 of the 11 factors compared.

Bank of Communications Company Profile

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.