Head-To-Head Survey: Bank of Communications (OTCMKTS:BCMXY) vs. First Capital (NASDAQ:FCAP)

First Capital (NASDAQ:FCAP) and Bank of Communications (OTCMKTS:BCMXY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Dividends

First Capital pays an annual dividend of $1.28 per share and has a dividend yield of 2.1%. Bank of Communications pays an annual dividend of $0.97 per share and has a dividend yield of 4.0%. First Capital pays out 23.1% of its earnings in the form of a dividend. Bank of Communications pays out 26.9% 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. First Capital has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for First Capital and Bank of Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Capital	0	0	2	0	3.00
Bank of Communications	0	1	0	0	2.00

Institutional & Insider Ownership

11.7% of First Capital shares are held by institutional investors. 4.1% of First Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

First Capital has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Bank of Communications has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500.

Valuation and Earnings

This table compares First Capital and Bank of Communications”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Capital	$65.31 million	3.14	$16.37 million	$5.53	11.09
Bank of Communications	$71.22 billion	1.00	$13.30 billion	$3.61	6.66

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

Profitability

This table compares First Capital and Bank of Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Capital	26.79%	13.39%	1.45%
Bank of Communications	19.23%	7.91%	0.64%

Summary

First Capital beats Bank of Communications on 13 of the 16 factors compared between the two stocks.

About First Capital

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest-bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides residential mortgage loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, credit cards and other personal loans, and loans secured by savings deposits, as well as unsecured consumer loans. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.

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.