Critical Analysis: Associated British Foods (OTCMKTS:ASBFY) versus China Minsheng Banking (OTCMKTS:CMAKY)

Associated British Foods (OTCMKTS:ASBFY) and China Minsheng Banking (OTCMKTS:CMAKY) are both large-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and target prices for Associated British Foods and China Minsheng Banking, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Associated British Foods	0	3	2	0	2.40
China Minsheng Banking	0	0	0	0	N/A

Risk and Volatility

Associated British Foods has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, China Minsheng Banking has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.

Valuation and Earnings

This table compares Associated British Foods and China Minsheng Banking’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Associated British Foods	$25.01 billion	1.05	$1.28 billion	N/A	N/A
China Minsheng Banking	$42.09 billion	0.40	$5.24 billion	$1.00	3.82

China Minsheng Banking has higher revenue and earnings than Associated British Foods.

Dividends

Associated British Foods pays an annual dividend of $1.07 per share and has a dividend yield of 3.1%. China Minsheng Banking pays an annual dividend of $0.22 per share and has a dividend yield of 5.8%. China Minsheng Banking pays out 22.0% of its earnings in the form of a dividend.

Profitability

This table compares Associated British Foods and China Minsheng Banking’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Associated British Foods	N/A	N/A	N/A
China Minsheng Banking	12.32%	5.56%	0.46%

Summary

China Minsheng Banking beats Associated British Foods on 6 of the 10 factors compared between the two stocks.

About Associated British Foods

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. It operates through five segments: Grocery, Ingredients, Agriculture, Sugar, and Retail. The Grocery segment manufactures and sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses. The Ingredients segment manufactures bakers' yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties. The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector. The Sugar segment is involved in growing, processing, and selling sugar beet and sugar cane to industrial users. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer women's, men's, and kids wear, as well as beauty, homeware, and accessories. The company was incorporated in 1934 and is headquartered in London, the United Kingdom. Associated British Foods plc operates as a subsidiary of Wittington Investments Limited.

About China Minsheng Banking

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.