Bank of China (OTCMKTS:BACHY) and Salzgitter (OTCMKTS:SZGPY) Critical Contrast

Bank of China (OTCMKTS:BACHYGet Free Report) and Salzgitter (OTCMKTS:SZGPYGet Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Dividends

Bank of China pays an annual dividend of $0.67 per share and has a dividend yield of 7.2%. Salzgitter pays an annual dividend of $0.07 per share and has a dividend yield of 2.5%. Bank of China pays out 25.9% of its earnings in the form of a dividend. Salzgitter pays out 10.8% 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 recommmendations for Bank of China and Salzgitter, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of China 0 0 1 0 3.00
Salzgitter 1 1 0 0 1.50

Valuation & Earnings

This table compares Bank of China and Salzgitter’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank of China $154.67 billion 0.71 $33.80 billion $2.59 3.61
Salzgitter $13.23 billion N/A $1.14 billion $0.65 4.32

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

Profitability

This table compares Bank of China and Salzgitter’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of China 19.67% 8.59% 0.74%
Salzgitter 2.91% 6.54% 2.91%

Volatility and Risk

Bank of China has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Salzgitter has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Summary

Bank of China beats Salzgitter on 8 of the 12 factors compared between the two stocks.

About Bank of China

(Get Free Report)

Bank of China Limited, together with its subsidiaries, provides various banking and financial services in Chinese Mainland, Hong Kong, Macao, Taiwan, and internationally. It operates through Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other segments. The Corporate Banking segment provides current accounts, deposits, overdrafts, loans, payments and settlements, trade-related products, and other credit facilities, as well as foreign currency, derivative, and wealth management products for corporate customers, government authorities, and financial institutions. The Personal Banking segment offers savings deposits, personal loans, credit cards and debit cards, payments and settlements, wealth management, and funds and insurance agency services to retail customers. The Treasury Operations segment offers foreign exchange transactions, customer-based interest rate, and foreign exchange derivative transactions, as well as money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment provides debt and equity underwriting and financial advisory, sale and trading of securities, stock brokerage, investment research, asset management services, and private equity investment services. The Insurance segment provides underwriting services for general and life insurance business, and insurance agency services. In addition, the company operates debt-to-equity swaps and other supporting, and aircraft and financial leasing business. The company was founded in 1912 and is headquartered in Beijing, China.

About Salzgitter

(Get Free Report)

Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through four segments: Steel Production, Steel Processing, Trading, and Technology. The Steel Production segment manufactures steel and special steels, such as hot-rolled wide strip, steel sheet, sections, tailored blanks, as well as scrap trading. The Steel Processing segment produces various high-grade heavy plates; and manufactures line pipes, HFI-welded tubes, and precision and stainless-steel tubes. The Trading segment operates a European sales network, as well as trading companies and agencies worldwide. The Technology segment engages in the provision of machinery and plants for the filling and packaging of beverages, as well as special machinery engineering for shoe manufacturing and elastomer production. The company also provides IT, facility management, logistics, automotive engineering, and research and development services, as well as supplies raw materials. Salzgitter AG was founded in 1858 and is headquartered in Salzgitter, Germany.

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