China Minsheng (OTCMKTS:CMAKY) vs. ING Group (NYSE:ING) Critical Analysis

China Minsheng (OTCMKTS:CMAKY) and ING Group (NYSE:ING) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Risk and Volatility

China Minsheng has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, ING Group has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for China Minsheng and ING Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Minsheng	0	1	0	0	2.00
ING Group	0	0	5	1	3.17

Valuation & Earnings

This table compares China Minsheng and ING Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Minsheng	$37.47 billion	0.61	$4.49 billion	$0.88	5.90
ING Group	$24.47 billion	3.52	$5.77 billion	$2.22	12.32

ING Group has lower revenue, but higher earnings than China Minsheng. China Minsheng is trading at a lower price-to-earnings ratio than ING Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

4.5% of ING Group shares are owned 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 Minsheng pays an annual dividend of $0.27 per share and has a dividend yield of 5.2%. ING Group pays an annual dividend of $0.69 per share and has a dividend yield of 2.5%. China Minsheng pays out 30.7% of its earnings in the form of a dividend. ING Group pays out 31.1% 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. China Minsheng is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares China Minsheng and ING Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Minsheng	11.27%	4.49%	0.39%
ING Group	26.94%	11.57%	0.57%

Summary

ING Group beats China Minsheng on 12 of the 15 factors compared between the two stocks.

About China Minsheng

China Minsheng Banking Corp., Ltd. provides banking products and services for individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit books and certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, micro-credit products for individuals, medium and long term, and short-term working capital loans; and debit and credit cards. In addition, it provides appointed and domestic remittance, payment and collection agent, clearing, safe deposit boxes, VIP, and salary and welfare agent card services, as well as internet, mobile, telephone, and self-serve banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; individual forex settlement, forex remittance, travelers promissory notes, collection, individual deposit certificate, and guarantee letter products; and comprehensive credit granting, forex settlement and sale, financial product investment, asset management, and trust financing services. Additionally, it provides convenient finance and investment banking services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company operates through branch-level institutions, business outlets, community sub-branches, and small business sub-branches. China Minsheng Banking Corp., Ltd. was incorporated in 1996 and is headquartered in Beijing, the People's Republic of China.

About ING Group

ING Groep N.V. provides various banking products and services in the Netherlands, Belgium, Germany, rest of Europe, and internationally. It operates through five segments: Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking. The company accepts current and savings accounts. It also offers business lending products; SME loans; consumer lending products, such as residential mortgage loans and other consumer lending loans; and mortgages. In addition, the company provides working capital solutions; debt and equity market solutions; various loans; payments; and cash management, trade and corporate finance, and treasury services, as well as savings, investment, insurance, and digital banking services. It serves individual customers, corporate clients, and financial institutions. ING Groep N.V. was founded in 1762 and is headquartered in Amsterdam, the Netherlands.