Financial Contrast: Chiba Bank (OTCMKTS:CHBAY) vs. China Construction Bank (OTCMKTS:CICHY)

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

Analyst Ratings

This is a summary of recent ratings and price targets for Chiba Bank and China Construction Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chiba Bank	0	1	0	0	2.00
China Construction Bank	0	1	0	0	2.00

Volatility & Risk

Chiba Bank has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, China Construction Bank has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.

Earnings & Valuation

This table compares Chiba Bank and China Construction Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chiba Bank	$2.96 billion	3.78	$624.86 million	$4.44	16.23
China Construction Bank	$181.98 billion	1.58	$47.15 billion	$3.66	6.01

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

Dividends

Chiba Bank pays an annual dividend of $0.54 per share and has a dividend yield of 0.7%. China Construction Bank pays an annual dividend of $0.80 per share and has a dividend yield of 3.6%. Chiba Bank pays out 12.2% of its earnings in the form of a dividend. China Construction Bank pays out 21.9% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chiba Bank	21.13%	7.83%	0.45%
China Construction Bank	26.72%	9.70%	0.77%

Summary

China Construction Bank beats Chiba Bank on 6 of the 10 factors compared between the two stocks.

About Chiba Bank

The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.

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.