Financial Review: Banco Do Brasil (OTCMKTS:BDORY) vs. China CITIC Bank (OTCMKTS:CHCJY)

China CITIC Bank (OTCMKTS:CHCJY) and Banco Do Brasil (OTCMKTS:BDORY) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Earnings and Valuation

This table compares China CITIC Bank and Banco Do Brasil”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China CITIC Bank	$49.07 billion	1.04	$9.82 billion	$3.45	6.06
Banco Do Brasil	$66.83 billion	0.38	$2.45 billion	$0.40	11.05

China CITIC Bank has higher earnings, but lower revenue than Banco Do Brasil. China CITIC Bank is trading at a lower price-to-earnings ratio than Banco Do Brasil, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.0% of Banco Do Brasil shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

China CITIC Bank pays an annual dividend of $0.87 per share and has a dividend yield of 4.2%. Banco Do Brasil pays an annual dividend of $0.02 per share and has a dividend yield of 0.5%. China CITIC Bank pays out 25.2% of its earnings in the form of a dividend. Banco Do Brasil pays out 5.0% 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for China CITIC Bank and Banco Do Brasil, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China CITIC Bank	0	1	0	0	2.00
Banco Do Brasil	2	1	0	0	1.33

Profitability

This table compares China CITIC Bank and Banco Do Brasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China CITIC Bank	20.81%	8.54%	0.72%
Banco Do Brasil	3.14%	9.01%	0.68%

Volatility & Risk

China CITIC Bank has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Banco Do Brasil has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Summary

China CITIC Bank beats Banco Do Brasil on 7 of the 13 factors compared between the two stocks.

About China CITIC Bank

China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.

About Banco Do Brasil

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasa­lia, Brazil.