Head-To-Head Survey: Banco Comercial Portugues (OTCMKTS:BPCGY) & Bank of Communications (OTCMKTS:BCMXY)

Banco Comercial Portugues (OTCMKTS:BPCGY) and Bank of Communications (OTCMKTS:BCMXY) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Volatility and Risk

Banco Comercial Portugues has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, Bank of Communications has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500.

Valuation and Earnings

This table compares Banco Comercial Portugues and Bank of Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Comercial Portugues	$5.82 billion	3.03	$980.79 million	$0.91	13.11
Bank of Communications	$75.42 billion	0.83	$13.02 billion	$3.87	5.47

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

Dividends

Banco Comercial Portugues pays an annual dividend of $0.16 per share and has a dividend yield of 1.3%. Bank of Communications pays an annual dividend of $0.85 per share and has a dividend yield of 4.0%. Banco Comercial Portugues pays out 17.6% of its earnings in the form of a dividend. Bank of Communications pays out 22.0% 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 recommendations and price targets for Banco Comercial Portugues and Bank of Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Comercial Portugues	0	0	0	2	4.00
Bank of Communications	0	0	0	0	0.00

Profitability

This table compares Banco Comercial Portugues and Bank of Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Comercial Portugues	15.89%	9.44%	0.76%
Bank of Communications	18.19%	7.70%	0.62%

Summary

Banco Comercial Portugues beats Bank of Communications on 8 of the 13 factors compared between the two stocks.

About Banco Comercial Portugues

Banco Comercial Português, S.A., a private sector bank, engages in the provision of various banking and financial products and services in Portugal and internationally. It operates through Retail Banking; Companies, Corporate & Investment Banking; Private Banking; Foreign Business; and Other segments. It offers a range of financial products and services, including current accounts, payment systems, savings and investment products, private banking, asset management, and investment banking services, such as mortgage loans, personal loans, commercial banking, leasing, factoring and insurance, and others. The company is also involved in the provision of investment fund and real estate management, e-commerce, web portal, real estate investment fund, trade finance, trust, consulting, brokerage, marketing, and real estate services, as well as internet, telephone, and mobile banking services. Banco Comercial Português, S.A. was incorporated in 1985 and is based in Porto, Portugal.

About Bank of Communications

Bank of Communications Co., Ltd. provides commercial banking products and services in China. The company offers savings deposit products, including demand deposits, lump-sum deposits and withdrawal, time deposit of small savings for lump-sum withdrawal, interest withdrawal on principal deposited, time-demand deposit, call deposit, swap management, and education deposit; personal certificate of deposit; salary financing A; and foreign currency deposit. It also provides credit, quasi-credit, and debit cards; new housing and second-hand mortgage loans and unsecured personal loans; personal wealth management advisor services; and precious metal and commodity trading services. In addition, the company offers corporate structured deposit and corporate certificate of deposit; corporate cash management; industrial chain finance program comprising prepayment financing, inventory financing, accounts receivable financing and accounts payable financing; syndicated loans; corporation overdraft; investment banking services; and offshore banking services, such as repayment financing, inventory financing, accounts receivable financing and accounts payable financing, and forex currencies. Further, it provides bond account activation, bond distribution, and transaction services; related bond escrow and settlement, pledge registration, and principal and interest payment services; training and consulting services for cooperative banks; cross-border inter-bank payments system services; consignment sales of precious metal products; bond underwriting distribution; third party bond depository services; bank derivatives transfer; b-share transfer; bankfutures transfer; standard warehouse warrant pledged financing; institutional investment consulting, wealth management, and insurance services; and clearing and settlement services for future markets. The company was founded in 1908 and is headquartered in Shanghai, the People’s Republic of China.