Head to Head Analysis: Commerzbank (OTCMKTS:CRZBY) & Banco Comercial Portugues (OTCMKTS:BPCGY)

Banco Comercial Portugues (OTCMKTS:BPCGY) and Commerzbank (OTCMKTS:CRZBY) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Dividends

Banco Comercial Portugues pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. Commerzbank pays an annual dividend of $0.52 per share and has a dividend yield of 1.3%. Banco Comercial Portugues pays out 17.6% of its earnings in the form of a dividend. Commerzbank pays out 22.9% 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. Banco Comercial Portugues is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Banco Comercial Portugues has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500. Comparatively, Commerzbank has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Banco Comercial Portugues and Commerzbank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Comercial Portugues	0	0	0	3	4.00
Commerzbank	0	5	2	1	2.50

Valuation and Earnings

This table compares Banco Comercial Portugues and Commerzbank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Comercial Portugues	$5.82 billion	2.54	$980.79 million	$0.91	10.99
Commerzbank	$25.96 billion	1.66	$2.90 billion	$2.27	17.76

Commerzbank has higher revenue and earnings than Banco Comercial Portugues. Banco Comercial Portugues is trading at a lower price-to-earnings ratio than Commerzbank, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Banco Comercial Portugues and Commerzbank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Comercial Portugues	15.89%	9.44%	0.76%
Commerzbank	11.03%	7.29%	0.45%

Summary

Banco Comercial Portugues beats Commerzbank on 8 of the 14 factors compared between the two stocks.

About Banco Comercial Portugues

Banco Comercial Português, S.A., a private sector bank, engages in the provision of various banking and financial products and services in Portugal and internationally. It operates through Retail Banking; Companies, Corporate & Investment Banking; Private Banking; Foreign Business; and Other segments. It offers a range of financial products and services, including current accounts, payment systems, savings and investment products, private banking, asset management, and investment banking services, such as mortgage loans, personal loans, commercial banking, leasing, factoring and insurance, and others. The company is also involved in the provision of investment fund and real estate management, e-commerce, web portal, real estate investment fund, trade finance, trust, consulting, brokerage, marketing, and real estate services, as well as internet, telephone, and mobile banking services. Banco Comercial Português, S.A. was incorporated in 1985 and is based in Porto, Portugal.

About Commerzbank

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.