Head-To-Head Analysis: Banco Latinoamericano de Comercio Exterior (NYSE:BLX) & China Minsheng (OTCMKTS:CMAKY)

Banco Latinoamericano de Comercio Exterior (NYSE:BLX) and China Minsheng (OTCMKTS:CMAKY) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Earnings and Valuation

This table compares Banco Latinoamericano de Comercio Exterior and China Minsheng”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Latinoamericano de Comercio Exterior	$836.85 million	2.64	$226.88 million	$6.02	9.85
China Minsheng	$33.55 billion	0.54	$4.25 billion	$0.86	4.83

China Minsheng has higher revenue and earnings than Banco Latinoamericano de Comercio Exterior. China Minsheng is trading at a lower price-to-earnings ratio than Banco Latinoamericano de Comercio Exterior, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Banco Latinoamericano de Comercio Exterior has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, China Minsheng has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Profitability

This table compares Banco Latinoamericano de Comercio Exterior and China Minsheng’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Latinoamericano de Comercio Exterior	27.77%	14.36%	1.79%
China Minsheng	11.70%	4.23%	0.38%

Analyst Recommendations

This is a summary of current ratings for Banco Latinoamericano de Comercio Exterior and China Minsheng, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Latinoamericano de Comercio Exterior	0	0	0	1	4.00
China Minsheng	0	1	0	0	2.00

Institutional and Insider Ownership

19.5% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Banco Latinoamericano de Comercio Exterior pays an annual dividend of $2.75 per share and has a dividend yield of 4.6%. China Minsheng pays an annual dividend of $0.19 per share and has a dividend yield of 4.6%. Banco Latinoamericano de Comercio Exterior pays out 45.7% of its earnings in the form of a dividend. China Minsheng pays out 22.1% 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. Banco Latinoamericano de Comercio Exterior has raised its dividend for 2 consecutive years. Banco Latinoamericano de Comercio Exterior is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Banco Latinoamericano de Comercio Exterior beats China Minsheng on 12 of the 15 factors compared between the two stocks.

About Banco Latinoamericano de Comercio Exterior

Banco Latinoamericano de Comercio Exterior, S. A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates in two segments, Commercial and Treasury. It offers bilateral loans; structured loans including syndicated and clubbed, such as acquisition and pre-export financing, A/B loan financing, bridge loans, and liability management; and project financing. The company also provides letter of credit comprising import and export letters of credit, and credit discounting and financing, as well as usance payable at sight; stand-by services; bank guarantees, including first demand and local guarantees; import and export documentary collection; irrevocable reimbursement undertaking; and canal tolls. In addition, it offers liquidity and investment solutions, such as time deposits, DDA accounts, Yankee certificate of deposits, and EMTN private placement services, as well as supply chain finance services. The company primarily serves financial institutions, corporations, and sovereigns and state-owned entities. Banco Latinoamericano de Comercio Exterior, S. A.was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S. A. in June 2009. The company was founded in 1975 and is headquartered in Panama City, the Republic of Panama.

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.