Reviewing China CITIC Bank (OTCMKTS:CHCJY) & Royal Bank Of Canada (NYSE:RY)

Royal Bank Of Canada (NYSE:RY) and China CITIC Bank (OTCMKTS:CHCJY) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Dividends

Royal Bank Of Canada pays an annual dividend of $4.71 per share and has a dividend yield of 2.7%. China CITIC Bank pays an annual dividend of $0.81 per share and has a dividend yield of 3.8%. Royal Bank Of Canada pays out 45.1% of its earnings in the form of a dividend. China CITIC Bank pays out 24.8% 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. Royal Bank Of Canada has increased its dividend for 15 consecutive years. China CITIC Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Royal Bank Of Canada has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, China CITIC Bank has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Valuation and Earnings

This table compares Royal Bank Of Canada and China CITIC Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Bank Of Canada	$67.74 billion	3.62	$14.54 billion	$10.45	16.78
China CITIC Bank	$47.42 billion	1.09	$9.54 billion	$3.27	6.49

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

Profitability

This table compares Royal Bank Of Canada and China CITIC Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Bank Of Canada	15.28%	17.12%	0.94%
China CITIC Bank	20.20%	8.48%	0.72%

Institutional & Insider Ownership

45.3% of Royal Bank Of Canada shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Royal Bank Of Canada and China CITIC Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Bank Of Canada	0	3	11	0	2.79
China CITIC Bank	0	0	0	0	0.00

Royal Bank Of Canada currently has a consensus price target of $162.00, indicating a potential downside of 7.62%. Given Royal Bank Of Canada’s stronger consensus rating and higher probable upside, research analysts plainly believe Royal Bank Of Canada is more favorable than China CITIC Bank.

Summary

Royal Bank Of Canada beats China CITIC Bank on 13 of the 16 factors compared between the two stocks.

About Royal Bank Of Canada

Royal Bank of Canada operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses. This segment offers financial products and services through branches, automated teller machines, and mobile sales network. Its Wealth Management segment provides a suite of wealth, investment, trust, banking, credit, and other advice-based solutions and strategies to high net worth and ultra-high net worth individuals, and institutional clients; asset management products to institutional and individual clients; and asset and investor services to financial institutions, asset managers, and asset owners. The company's Insurance segment offers life, health, home, auto, travel, wealth, annuities, property and casualty, and reinsurance advice and solutions; and business insurance services to individual, business, and group clients through its advice centers, RBC insurance stores, and mobile advisors; digital platforms; and independent brokers and partners. The company's Capital Markets segment offers advisory and origination, sales and trading, lending and financing, and transaction banking services to corporations, institutional clients, asset managers, private equity firms, and governments. The company was founded in 1864 and is headquartered in Toronto, Canada.

About China CITIC Bank

China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.