Financial Analysis: Agri Bank China (OTCMKTS:ACGBY) & Banco Bilbao Viscaya Argentaria (NYSE:BBVA)

Agri Bank China (OTCMKTS:ACGBY) and Banco Bilbao Viscaya Argentaria (NYSE:BBVA) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Agri Bank China and Banco Bilbao Viscaya Argentaria, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agri Bank China	0	2	0	0	2.00
Banco Bilbao Viscaya Argentaria	0	5	1	0	2.17

Dividends

Agri Bank China pays an annual dividend of $0.72 per share and has a dividend yield of 4.0%. Banco Bilbao Viscaya Argentaria pays an annual dividend of $1.14 per share and has a dividend yield of 4.6%. Agri Bank China pays out 25.9% of its earnings in the form of a dividend. Banco Bilbao Viscaya Argentaria pays out 54.3% 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.

Earnings and Valuation

This table compares Agri Bank China and Banco Bilbao Viscaya Argentaria”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agri Bank China	$188.76 billion	1.34	$40.48 billion	$2.78	6.49
Banco Bilbao Viscaya Argentaria	$41.77 billion	3.35	$11.89 billion	$2.10	11.68

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

Risk & Volatility

Agri Bank China has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, Banco Bilbao Viscaya Argentaria has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Insider and Institutional Ownership

3.0% of Banco Bilbao Viscaya Argentaria shares are owned by institutional investors. 0.0% of Banco Bilbao Viscaya Argentaria shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Agri Bank China and Banco Bilbao Viscaya Argentaria’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agri Bank China	21.45%	9.51%	0.62%
Banco Bilbao Viscaya Argentaria	28.21%	17.65%	1.29%

Summary

Banco Bilbao Viscaya Argentaria beats Agri Bank China on 11 of the 15 factors compared between the two stocks.

About Agri Bank China

Agricultural Bank of China Limited, together with its subsidiaries, provides banking products and services. The company operates through Corporate Banking, Personal Banking, and Treasury Operations segments. It offers demand, personal call, foreign currency call, time or demand optional, foreign exchange call, foreign exchange time, savings, agreed term, and negotiated deposit accounts, as well as certificates of deposit; and loans, including housing, consumer, business, fixed asset, working capital, real estate, and entrusted syndicated loans, as well as trade finances, guarantees and commitments, and loans with custody of export rebates accounts. The company provides credit card, debit card, payment and settlement, private banking, cash management, investment banking, custody, financial market, and financial institution services, as well as trading and wealth management services; and personal fund collection and automatic transfer services. In addition, it offers agro-related personal and corporate banking products and services; telephone, mobile, self-service, television, and SMS banking services; financial leasing services; fund management services; asset custodian services; and insurance and reinsurance related products and services. The company operates domestic branches, including specialized institutions, training institutes, tier-1 branches, tier-2 branches, tier-1 sub-branches, foundation-level branch outlets and other establishments; overseas branches in Hong Kong, Singapore, Seoul, New York, Dubai International Financial Centre, Tokyo, Frankfurt, Sydney, Luxemburg, Dubai, London, Macao, and Hanoi; and overseas representative offices in Vancouver, Taipei, Sao Paulo, and Dushanbe. The company was founded in 1951 and is based in Beijing, the People's Republic of China.

About Banco Bilbao Viscaya Argentaria

Banco Bilbao Vizcaya Argentaria, S.A. provides retail banking, wholesale banking, and asset management services in the United States, Spain, Mexico, Turkey, South America, and internationally. The company offers savings account, demand deposits, and time deposits; and loan products, such as residential mortgages, other households, credit card loans, loans to enterprises and public sector, as well as consumer finance. It provides insurance and asset management business, including corporate, commercial, SME, payment systems, retail, private and investment banking, pension and life insurance, leasing, factoring, and brokerage. The company provides its products through online and mobile channels. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.