China Minsheng (OTCMKTS:CMAKY – Get Free Report) and Banco Santander (NYSE:SAN – Get Free Report) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Valuation and Earnings
This table compares China Minsheng and Banco Santander”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Minsheng | $33.55 billion | 0.53 | $4.25 billion | $0.86 | 4.70 |
| Banco Santander | $66.36 billion | 3.07 | $15.95 billion | $1.21 | 11.46 |
Profitability
This table compares China Minsheng and Banco Santander’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Minsheng | 11.70% | 4.23% | 0.38% |
| Banco Santander | 26.92% | 12.23% | 0.74% |
Dividends
China Minsheng pays an annual dividend of $0.11 per share and has a dividend yield of 2.7%. Banco Santander pays an annual dividend of $0.21 per share and has a dividend yield of 1.5%. China Minsheng pays out 12.8% of its earnings in the form of a dividend. Banco Santander pays out 17.4% 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 Minsheng is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
China Minsheng has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Banco Santander has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
Insider & Institutional Ownership
9.2% of Banco Santander shares are owned by institutional investors. 9.5% of Banco Santander shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for China Minsheng and Banco Santander, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Minsheng | 0 | 1 | 0 | 0 | 2.00 |
| Banco Santander | 1 | 3 | 6 | 0 | 2.50 |
Summary
Banco Santander beats China Minsheng on 13 of the 15 factors compared between the two stocks.
About China Minsheng
China Minsheng Banking Corp., Ltd. provides banking products and services for individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit books and certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, micro-credit products for individuals, medium and long term, and short-term working capital loans; and debit and credit cards. In addition, it provides appointed and domestic remittance, payment and collection agent, clearing, safe deposit boxes, VIP, and salary and welfare agent card services, as well as internet, mobile, telephone, and self-serve banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; individual forex settlement, forex remittance, travelers promissory notes, collection, individual deposit certificate, and guarantee letter products; and comprehensive credit granting, forex settlement and sale, financial product investment, asset management, and trust financing services. Additionally, it provides convenient finance and investment banking services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company operates through branch-level institutions, business outlets, community sub-branches, and small business sub-branches. China Minsheng Banking Corp., Ltd. was incorporated in 1996 and is headquartered in Beijing, the People's Republic of China.
About Banco Santander
Banco Santander, S.A. provides various financial services worldwide. The company operates through Retail Banking, Santander Corporate & Investment Banking, Wealth Management & Insurance, and PagoNxt segments. It offers demand and time deposits, mutual funds, and current and savings accounts; mortgages, consumer finance, loans, and various financing solutions; and project finance, debt capital markets, global transaction banking, and corporate finance services. The company also provides asset management and private banking services; and insurance products. In addition, it offers corporate and investment banking services; and digital payment solutions. Further, it offers online banking and financial services to retail, business, institutional, corporate, private banking and university customers and clients. The company was formerly known as Banco Santander Central Hispano SA and changed its name to Banco Santander, S.A. in February 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.
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