Head to Head Survey: China CITIC Bank (OTCMKTS:CHCJY) & 1st Source (NASDAQ:SRCE)

1st Source (NASDAQ:SRCE) and China CITIC Bank (OTCMKTS:CHCJY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Valuation and Earnings

This table compares 1st Source and China CITIC Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Source	$600.00 million	3.49	$158.28 million	$7.41	11.73
China CITIC Bank	$49.07 billion	1.07	$9.82 billion	$3.45	6.19

China CITIC Bank has higher revenue and earnings than 1st Source. China CITIC Bank is trading at a lower price-to-earnings ratio than 1st Source, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

74.5% of 1st Source shares are owned by institutional investors. 20.2% of 1st Source shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares 1st Source and China CITIC Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Source	28.85%	13.57%	1.97%
China CITIC Bank	20.81%	8.35%	0.71%

Analyst Ratings

This is a summary of recent recommendations for 1st Source and China CITIC Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Source	0	3	1	1	2.60
China CITIC Bank	0	1	0	0	2.00

1st Source presently has a consensus target price of $91.67, suggesting a potential upside of 5.44%. Given 1st Source’s stronger consensus rating and higher probable upside, equities research analysts plainly believe 1st Source is more favorable than China CITIC Bank.

Volatility & Risk

1st Source has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, China CITIC Bank has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Dividends

1st Source pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. China CITIC Bank pays an annual dividend of $0.87 per share and has a dividend yield of 4.1%. 1st Source pays out 24.3% of its earnings in the form of a dividend. China CITIC Bank pays out 25.2% 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. 1st Source has increased its dividend for 38 consecutive years.

Summary

1st Source beats China CITIC Bank on 15 of the 18 factors compared between the two stocks.

About 1st Source

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.

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.