Reviewing HANG SENG BK LT/S (OTCMKTS:HSNGY) and OVERSEA-CHINESE/ADR (OTCMKTS:OVCHY)

HANG SENG BK LT/S (OTCMKTS:HSNGY) and OVERSEA-CHINESE/ADR (OTCMKTS:OVCHY) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Insider and Institutional Ownership

0.0% of HANG SENG BK LT/S shares are held by institutional investors. Comparatively, 0.0% of OVERSEA-CHINESE/ADR 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

HANG SENG BK LT/S pays an annual dividend of $0.50 per share and has a dividend yield of 3.1%. OVERSEA-CHINESE/ADR pays an annual dividend of $0.69 per share and has a dividend yield of 5.8%. HANG SENG BK LT/S pays out 30.5% of its earnings in the form of a dividend.

Volatility & Risk

HANG SENG BK LT/S has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, OVERSEA-CHINESE/ADR has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares HANG SENG BK LT/S and OVERSEA-CHINESE/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HANG SENG BK LT/S N/A N/A N/A
OVERSEA-CHINESE/ADR 28.11% 9.96% 0.95%

Valuation & Earnings

This table compares HANG SENG BK LT/S and OVERSEA-CHINESE/ADR’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HANG SENG BK LT/S $6.85 billion 4.46 $3.20 billion $1.64 9.76
OVERSEA-CHINESE/ADR $11.02 billion 2.32 $3.33 billion N/A N/A

OVERSEA-CHINESE/ADR has higher revenue and earnings than HANG SENG BK LT/S.

Analyst Recommendations

This is a summary of recent recommendations for HANG SENG BK LT/S and OVERSEA-CHINESE/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HANG SENG BK LT/S 0 0 1 0 3.00
OVERSEA-CHINESE/ADR 0 1 0 0 2.00

Summary

OVERSEA-CHINESE/ADR beats HANG SENG BK LT/S on 9 of the 12 factors compared between the two stocks.

HANG SENG BK LT/S Company Profile

Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprise, and institutional customers in Hong Kong, Mainland China, and internationally. It operates through four segments: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Other. The company offers personal banking services, including current and savings accounts, mortgages and personal loans, credit cards, and insurance and wealth management services, as well as consumer lending services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment, and corporate wealth management services, as well as general banking, interest rate, money market, structured, derivative products, etc. In addition, the company offers trustee, nominee, retirement benefit and life assurance, fund management, stock broking, and property management services, as well as index compilation and licensing; fund raising and sales; and asset management services. It operates approximately 280 service outlets in Hong Kong; branches in Macau and Singapore; and a representative office in Taipei. Hang Seng Bank Limited, through its subsidiary, Hang Seng Bank (China) Limited, operates a mainland China network with outlets in the Pearl River delta, the Yangtze River delta, the Bohai Rim region, and Midwest China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited is a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.

OVERSEA-CHINESE/ADR Company Profile

Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high net worth individuals. Its Global Corporate/Investment Banking segment provides project financing, overdrafts, trade financing, and deposit accounts; fee-based services, such as cash management and custodian services; investment banking services, including financing solutions, syndicated loans and advisory services, corporate finance services for initial public offerings, secondary fund-raising, and takeovers and mergers; and customized and structured equity-linked financing services. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Treasury and Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as provision of structured treasury products and financial solutions. Its OCBC Wing Hang segment offers commercial banking, consumer financing, share brokerage, and insurance services. The company's Insurance segment provides fund management services, and life and general insurance products. Its Others segment is involved in property and investment holding activities. As of May 7, 2018, the company operated a network of 570 branches and representative offices in 19 countries and regions. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

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