Critical Contrast: Finward Bancorp (OTCMKTS:FNWD) & China Minsheng Banking (OTCMKTS:CGMBF)

Dividends

China Minsheng Banking pays an annual dividend of $0.10 per share and has a dividend yield of 20.4%. Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. China Minsheng Banking pays out 8.0% of its earnings in the form of a dividend. Finward Bancorp pays out 25.5% 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 Banking is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

3.6% of China Minsheng Banking shares are owned by institutional investors. Comparatively, 26.6% of Finward Bancorp shares are owned by institutional investors. 13.1% of Finward Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares China Minsheng Banking and Finward Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Minsheng Banking	N/A	N/A	N/A
Finward Bancorp	14.46%	10.52%	0.67%

Earnings & Valuation

This table compares China Minsheng Banking and Finward Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Minsheng Banking	N/A	N/A	N/A	$1.27	0.39
Finward Bancorp	$66.10 million	2.45	$15.08 million	$1.88	19.87

Finward Bancorp has higher revenue and earnings than China Minsheng Banking. China Minsheng Banking is trading at a lower price-to-earnings ratio than Finward Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Finward Bancorp beats China Minsheng Banking on 8 of the 10 factors compared between the two stocks.

About China Minsheng Banking

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 Finward Bancorp

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company's deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, custodial services, guardianships, IRA accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.