Oversea-Chinese Banking (OTCMKTS:OVCHY) & China Construction Bank (OTCMKTS:CICHY) Critical Analysis

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

Valuation and Earnings

This table compares Oversea-Chinese Banking and China Construction Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oversea-Chinese Banking	$20.33 billion	2.84	$5.68 billion	N/A	N/A
China Construction Bank	$188.88 billion	1.27	$46.68 billion	$3.60	5.33

China Construction Bank has higher revenue and earnings than Oversea-Chinese Banking.

Analyst Ratings

This is a summary of current ratings for Oversea-Chinese Banking and China Construction Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oversea-Chinese Banking	1	0	0	0	1.00
China Construction Bank	0	0	0	0	0.00

Dividends

Oversea-Chinese Banking pays an annual dividend of $1.13 per share and has a dividend yield of 4.4%. China Construction Bank pays an annual dividend of $0.88 per share and has a dividend yield of 4.6%. China Construction Bank pays out 24.4% of its earnings in the form of a dividend.

Profitability

This table compares Oversea-Chinese Banking and China Construction Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oversea-Chinese Banking	N/A	N/A	N/A
China Construction Bank	24.99%	10.06%	0.80%

Risk & Volatility

Oversea-Chinese Banking has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, China Construction Bank has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Oversea-Chinese Banking shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

China Construction Bank beats Oversea-Chinese Banking on 6 of the 11 factors compared between the two stocks.

About Oversea-Chinese Banking

Oversea-Chinese Banking Corporation Limited engages in the provision of financial services in Singapore, Malaysia, Indonesia, Greater China, rest of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high-net-worth individuals. Its Global Wholesale Banking segment provides long-term project financing, short-term credit, working capital, and trade financing; customized and structured equity-linked financing products; cash management and custodian services; capital market solutions; corporate finance and advisory banking services; and treasury products. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as structured treasury products and financial solutions. Its Insurance segment provides fund management services, and life and general insurance products. The company's Others segment is involved in property and investment holding activities. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

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.