Reviewing China CITIC Bank (OTCMKTS:CHCJY) and ING Group (NYSE:ING)

China CITIC Bank (OTCMKTS:CHCJY) and ING Group (NYSE:ING) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Earnings & Valuation

This table compares China CITIC Bank and ING Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China CITIC Bank	$47.42 billion	N/A	$9.54 billion	$3.27	5.22
ING Group	$24.47 billion	3.26	$5.77 billion	$2.17	11.68

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

Risk & Volatility

China CITIC Bank has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, ING Group has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for China CITIC Bank and ING Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China CITIC Bank	0	0	0	0	0.00
ING Group	0	1	5	1	3.00

Insider & Institutional Ownership

4.5% of ING Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

China CITIC Bank pays an annual dividend of $0.73 per share and has a dividend yield of 4.3%. ING Group pays an annual dividend of $0.69 per share and has a dividend yield of 2.7%. China CITIC Bank pays out 22.3% of its earnings in the form of a dividend. ING Group pays out 31.8% 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. China CITIC Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares China CITIC Bank and ING Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China CITIC Bank	19.59%	8.44%	0.72%
ING Group	27.28%	11.62%	0.58%

Summary

ING Group beats China CITIC Bank on 8 of the 14 factors compared between the two stocks.

About China CITIC Bank

China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.

About ING Group

ING Groep N.V. provides various banking products and services in the Netherlands, Belgium, Germany, rest of Europe, and internationally. It operates through five segments: Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking. The company accepts current and savings accounts. It also offers business lending products; SME loans; consumer lending products, such as residential mortgage loans and other consumer lending loans; and mortgages. In addition, the company provides working capital solutions; debt and equity market solutions; various loans; payments; and cash management, trade and corporate finance, and treasury services, as well as savings, investment, insurance, and digital banking services. It serves individual customers, corporate clients, and financial institutions. ING Groep N.V. was founded in 1762 and is headquartered in Amsterdam, the Netherlands.