Financial Survey: BBVA Banco Frances (NYSE:BBAR) & China Minsheng (OTCMKTS:CMAKY)

China Minsheng (OTCMKTS:CMAKY) and BBVA Banco Frances (NYSE:BBAR) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
China Minsheng	11.27%	4.49%	0.39%
BBVA Banco Frances	4.46%	7.43%	1.18%

Dividends

China Minsheng pays an annual dividend of $0.27 per share and has a dividend yield of 5.6%. BBVA Banco Frances pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. China Minsheng pays out 30.7% of its earnings in the form of a dividend. BBVA Banco Frances pays out 42.1% 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. China Minsheng is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

China Minsheng has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, BBVA Banco Frances has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Minsheng	$37.47 billion	0.56	$4.49 billion	$0.88	5.48
BBVA Banco Frances	$4.86 billion	0.78	$396.45 million	$0.95	19.43

China Minsheng has higher revenue and earnings than BBVA Banco Frances. China Minsheng 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 Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Minsheng	0	1	0	0	2.00
BBVA Banco Frances	0	3	2	2	2.86

BBVA Banco Frances has a consensus target price of $17.67, indicating a potential downside of 4.30%. Given BBVA Banco Frances’ stronger consensus rating and higher probable upside, analysts plainly believe BBVA Banco Frances is more favorable than China Minsheng.

Summary

BBVA Banco Frances beats China Minsheng on 10 of the 15 factors compared between the two stocks.

About China Minsheng

China Minsheng Banking Corp., Ltd. provides banking products and services for individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit books and certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, micro-credit products for individuals, medium and long term, and short-term working capital loans; and debit and credit cards. In addition, it provides appointed and domestic remittance, payment and collection agent, clearing, safe deposit boxes, VIP, and salary and welfare agent card services, as well as internet, mobile, telephone, and self-serve banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; individual forex settlement, forex remittance, travelers promissory notes, collection, individual deposit certificate, and guarantee letter products; and comprehensive credit granting, forex settlement and sale, financial product investment, asset management, and trust financing services. Additionally, it provides convenient finance and investment banking services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company operates through branch-level institutions, business outlets, community sub-branches, and small business sub-branches. China Minsheng Banking Corp., Ltd. was incorporated in 1996 and is headquartered in Beijing, the People's Republic of China.

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.