Head to Head Review: Bank of China (OTCMKTS:BACHY) & Grupo Supervielle (NYSE:SUPV)

Bank of China (OTCMKTS:BACHY) and Grupo Supervielle (NYSE:SUPV) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Bank of China and Grupo Supervielle”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of China	$169.73 billion	1.25	$33.81 billion	$2.54	6.46
Grupo Supervielle	$1.65 billion	0.48	-$38.87 million	($0.36)	-24.98

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

Dividends

Bank of China pays an annual dividend of $0.55 per share and has a dividend yield of 3.3%. Grupo Supervielle pays an annual dividend of $0.19 per share and has a dividend yield of 2.1%. Bank of China pays out 21.7% of its earnings in the form of a dividend. Grupo Supervielle pays out -52.8% 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 target prices for Bank of China and Grupo Supervielle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of China	0	0	0	0	0.00
Grupo Supervielle	2	3	2	0	2.00

Grupo Supervielle has a consensus target price of $13.00, indicating a potential upside of 44.54%. Given Grupo Supervielle’s stronger consensus rating and higher possible upside, analysts plainly believe Grupo Supervielle is more favorable than Bank of China.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bank of China	19.93%	7.86%	0.66%
Grupo Supervielle	-2.18%	-3.99%	-0.57%

Risk & Volatility

Bank of China has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, Grupo Supervielle has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.

Summary

Bank of China beats Grupo Supervielle on 9 of the 14 factors compared between the two stocks.

About Bank of China

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 six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other. 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 Grupo Supervielle

Grupo Supervielle S.A., a financial services holding company, provides various banking products and services in Argentina. The company operates through Personal & Business Banking, Corporate Banking, Bank Treasury, Consumer Finance, Insurance, and Asset Management and Other Services segments. It offers savings accounts, time and demand deposits, and checking accounts; various loan products, including personal, consumer, mortgage, unsecured, and car loans; overdrafts; loans with special facilities for project and working capital financing; and leasing, bank guarantees for tenants, salary advances, domestic and international factoring, international guarantees and letters of credit, payroll payment plans, credit and debit cards, and senior citizens benefit payment services, as well as financial services and investments, such as mutual funds and guarantees. The company also provides foreign trade and cash management; advisory services; treasury services; insurance products comprising life, home, personal accidents, technology, ATMs, protected bag, and protected content; and asset management and other services, as well as operates as a digital online broker. It operates through a network of bank branches, ATMs, and self-service terminals, as well as ATMs with biometric identification. The company was formerly known as Inversiones y Participaciones S.A. and changed its name to Grupo Supervielle S.A. in November 2008. Grupo Supervielle S.A. was founded in 1887 and is based in Buenos Aires, Argentina.