CHINA MERCHANTS/ADR (OTCMKTS:CIHKY) and Hexindai (NASDAQ:HX) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.
This is a summary of current ratings and price targets for CHINA MERCHANTS/ADR and Hexindai, as reported by MarketBeat.
Valuation and Earnings
This table compares CHINA MERCHANTS/ADR and Hexindai’s revenue, earnings per share (EPS) and valuation.
CHINA MERCHANTS/ADR has higher revenue and earnings than Hexindai.
Risk & Volatility
CHINA MERCHANTS/ADR has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Hexindai has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
This table compares CHINA MERCHANTS/ADR and Hexindai’s net margins, return on equity and return on assets.
Institutional & Insider Ownership
0.0% of CHINA MERCHANTS/ADR shares are owned by institutional investors. Comparatively, 1.2% of Hexindai shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
CHINA MERCHANTS/ADR pays an annual dividend of $0.53 per share and has a dividend yield of 2.5%. Hexindai pays an annual dividend of $0.25 per share and has a dividend yield of 9.1%.
Hexindai beats CHINA MERCHANTS/ADR on 6 of the 10 factors compared between the two stocks.
CHINA MERCHANTS/ADR Company Profile
China Merchants Bank Co., Ltd. provides various wholesale and retail banking products and services in the People's Republic of China and internationally. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. The company offers time, demand, call, notice, and RMB deposits; and deposit, current, and capital accounts. It also provides personal commercial real estate, consumption, housing, and car loans, as well as loans to finance for studying abroad; micro-business, combo, guarantee, and housing mortgage loans; mortgage loans for equipment; bank acceptance, discount, liquid capital, and fixed asset loans; and financial leasing, third-party payment, and guarantee services, as well as loans for vessels. In addition, the company offers investment and wealth management, and insurance products; individual forex option and express, and gold trading services; open ended funds; private banking and cash management services; and financial consultation, debt financing underwriting, merger and acquisition financing, and equity financing and enterprise listing services. Further, it provides settlement and trade chain financing services; international business, wealth investment, risk and financial management, cross border RMB financing, international factoring and settlement, oversea financing, and trade finance services; and forfeiting and risk participation, cross border RMB clearing, interbank business, and escrow services. Additionally, the company offers instruments; custody and pension services; credit cards; and Internet and mobile banking services. As of December 31, 2017, it had 137 branches; 1,681 sub-branches; 1 branch-level operation center; 1 representative office; 3,340 self-service centers; 11,382 self-service machines, including 1,610 automatic teller machines, and 9,772 deposit-taking and cash withdrawal machines; and 12,936 visual counters. The company was founded in 1987 and is headquartered in Shenzhen, China.
Hexindai Company Profile
Hexindai Inc. operates a consumer lending marketplace that facilitates loans in China. It primarily focuses on facilitating medium-sized credit loans. The company provides borrowers a range of products based on customer segmentation data and tailored to the specific needs of the emerging middle class; and investors various types of investment products. The company was founded in 2013 and is headquartered in Beijing, China.