Financial Comparison: BBVA Banco Frances (NYSE:BBAR) versus China Construction Bank (OTCMKTS:CICHY)

BBVA Banco Frances (NYSE:BBAR) and China Construction Bank (OTCMKTS:CICHY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares BBVA Banco Frances and China Construction Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BBVA Banco Frances	4.16%	7.56%	1.10%
China Construction Bank	27.65%	9.82%	0.78%

Risk & Volatility

BBVA Banco Frances has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, China Construction Bank has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.

Dividends

BBVA Banco Frances pays an annual dividend of $0.84 per share and has a dividend yield of 6.6%. China Construction Bank pays an annual dividend of $0.94 per share and has a dividend yield of 3.8%. BBVA Banco Frances pays out 82.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. China Construction Bank pays out 25.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares BBVA Banco Frances and China Construction Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBVA Banco Frances	$4.96 billion	0.52	$252.12 million	$1.02	12.40
China Construction Bank	$181.98 billion	1.79	$47.15 billion	$3.72	6.69

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

Analyst Recommendations

This is a breakdown of recent recommendations for BBVA Banco Frances and China Construction Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBVA Banco Frances	0	4	1	1	2.50
China Construction Bank	0	1	0	0	2.00

BBVA Banco Frances currently has a consensus target price of $20.00, indicating a potential upside of 58.10%. Given BBVA Banco Frances’ stronger consensus rating and higher possible upside, equities analysts plainly believe BBVA Banco Frances is more favorable than China Construction Bank.

Summary

BBVA Banco Frances beats China Construction Bank on 8 of the 15 factors compared between the two stocks.

About BBVA Banco Frances

Banco BBVA Argentina S.A. provides various banking products and services to individuals and companies in Argentina. The company provides retail banking products and services, such as checking and savings accounts, time deposits, credit cards financing, consumer and pledge loans, mortgages, insurance, and investment products to individuals; and small and medium-sized companies products and services, including financing products, factoring, checking accounts, time deposits, transactional and payroll services, insurance, and investment products to private-sector companies. It also provides corporate and investment banking products and services, such as global transaction services; global markets solutions comprising risk management and securities brokerage; long-term financing products, including project finance and syndicated loans; and corporate finance services comprising mergers and acquisitions, and capital markets advisory services to corporations and multinational companies. The company was formerly known as BBVA Banco Francés S.A. and changed its name to Banco BBVA Argentina S.A. in July 2019. Banco BBVA Argentina S.A. was incorporated in 1886 and is based in Buenos Aires, Argentina.

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.