Contrasting Grupo Financiero Galicia (NASDAQ:GGAL) & China CITIC Bank (OTCMKTS:CHCJY)

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

Analyst Ratings

This is a breakdown of current recommendations for China CITIC Bank and Grupo Financiero Galicia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China CITIC Bank	0	1	0	0	2.00
Grupo Financiero Galicia	1	3	2	1	2.43

Grupo Financiero Galicia has a consensus target price of $64.00, suggesting a potential upside of 28.98%. Given Grupo Financiero Galicia’s stronger consensus rating and higher possible upside, analysts plainly believe Grupo Financiero Galicia is more favorable than China CITIC Bank.

Dividends

China CITIC Bank pays an annual dividend of $0.87 per share and has a dividend yield of 4.5%. Grupo Financiero Galicia pays an annual dividend of $4.86 per share and has a dividend yield of 9.8%. China CITIC Bank pays out 25.7% of its earnings in the form of a dividend. Grupo Financiero Galicia pays out 214.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares China CITIC Bank and Grupo Financiero Galicia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China CITIC Bank	20.39%	8.44%	0.71%
Grupo Financiero Galicia	7.13%	18.96%	3.47%

Earnings & Valuation

This table compares China CITIC Bank and Grupo Financiero Galicia”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China CITIC Bank	$49.07 billion	0.97	$9.82 billion	$3.38	5.77
Grupo Financiero Galicia	$10.56 billion	0.75	$170.02 million	$2.27	21.86

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

Volatility & Risk

China CITIC Bank has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Grupo Financiero Galicia has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Summary

Grupo Financiero Galicia beats China CITIC Bank on 9 of the 15 factors compared between the two stocks.

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.

About Grupo Financiero Galicia

Grupo Financiero Galicia S.A., a financial service holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, NaranjaX, Insurance, and Other Businesses segments. It also offers personal loans; express and mortgage loans; pledge and credit card loans; credit and debit cards; and online banking services, as well as savings, deposits, and checking accounts related services. In addition, the company offers financing products; consumer finance and digital banking services; electronic check; global custody services; Fima funds; financial and stock market services to individuals, companies, and financial institutions; foreign trade services; and capital market and investment banking products that include debt securities, short-term securities, and financial trusts. Further, it provides robbery, personal accident, life collective, home, life, integral, pet, surety, and technical insurance products. Additionally, the company offers private banking services to high net worth individuals; and operates digital investment platform. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.