Head-To-Head Survey: Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) and China Construction Bank (OTCMKTS:CICHY)

Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) and China Construction Bank (OTCMKTS:CICHY) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Valuation & Earnings

This table compares Svenska Handelsbanken Ab Publ and China Construction Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Svenska Handelsbanken Ab Publ	$21.75 billion	N/A	$2.42 billion	$0.68	10.53
China Construction Bank	$188.88 billion	1.41	$46.68 billion	$3.60	5.65

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

Dividends

Svenska Handelsbanken Ab Publ pays an annual dividend of $0.60 per share and has a dividend yield of 8.4%. China Construction Bank pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. Svenska Handelsbanken Ab Publ pays out 88.2% 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 22.2% of its earnings in the form of a dividend.

Volatility and Risk

Svenska Handelsbanken Ab Publ has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, China Construction Bank has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Svenska Handelsbanken Ab Publ and China Construction Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Svenska Handelsbanken Ab Publ	2	4	0	0	1.67
China Construction Bank	0	1	0	0	2.00

Profitability

This table compares Svenska Handelsbanken Ab Publ and China Construction Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Svenska Handelsbanken Ab Publ	16.69%	14.18%	0.75%
China Construction Bank	25.63%	9.81%	0.78%

Summary

China Construction Bank beats Svenska Handelsbanken Ab Publ on 7 of the 11 factors compared between the two stocks.

About Svenska Handelsbanken Ab Publ

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.

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.