China Minsheng (OTCMKTS:CMAKY – Get Free Report) and Waterstone Financial (NASDAQ:WSBF – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.
Valuation & Earnings
This table compares China Minsheng and Waterstone Financial”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Minsheng | $33.55 billion | 0.60 | $4.25 billion | $0.86 | 5.37 |
| Waterstone Financial | $201.29 million | 1.92 | $26.40 million | $1.72 | 12.51 |
Dividends
China Minsheng pays an annual dividend of $0.11 per share and has a dividend yield of 2.4%. Waterstone Financial pays an annual dividend of $0.68 per share and has a dividend yield of 3.2%. China Minsheng pays out 12.8% of its earnings in the form of a dividend. Waterstone Financial pays out 39.5% 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.
Profitability
This table compares China Minsheng and Waterstone Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Minsheng | 10.72% | 3.89% | 0.35% |
| Waterstone Financial | 14.57% | 8.64% | 1.33% |
Insider & Institutional Ownership
62.7% of Waterstone Financial shares are owned by institutional investors. 6.0% of Waterstone Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for China Minsheng and Waterstone Financial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Minsheng | 0 | 0 | 0 | 1 | 4.00 |
| Waterstone Financial | 0 | 0 | 1 | 0 | 3.00 |
Risk & Volatility
China Minsheng has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, Waterstone Financial has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.
Summary
Waterstone Financial beats China Minsheng on 11 of the 16 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 Waterstone Financial
Waterstone Financial, Inc. operates as a bank holding company for WaterStone Bank SSB that provides various financial services to customers in southeastern Wisconsin, the United States. It operates in two segments, Community Banking and Mortgage Banking. The Community Banking segment offers consumer and business banking products and services, such as deposit and transactional solutions, including checking accounts, online banking and bill pay services, money transfer services, as well as credit, debit, and pre-paid cards; investable funds solutions comprising savings, money market deposits, individual retirement accounts, and certificates of deposit; residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; and fixed and variable annuities, insurance products, and trust and investment management accounts. It also provides transaction deposits, interest bearing transaction accounts, demand deposits, non-interest-bearing demand accounts, and time deposits; secured and unsecured lines; commercial real estate construction loans; term loans for working capital, inventory, and general corporate use; and personal term loans and investment services. The Mortgage Banking segment offers residential mortgage loans for the purpose of sale in the secondary market. It also invests in a portfolio of securities include mortgage-backed securities, government-sponsored and private-label enterprise bonds, collateralized mortgage and municipal obligations, and other debt securities. The company was formerly known as Wauwatosa Holdings, Inc. and changed its name to Waterstone Financial, Inc. in August 2008. The company was founded in 1921 and is based in Wauwatosa, Wisconsin.
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