Cullen/Frost Bankers (NYSE:CFR) and China Minsheng Banking (OTCMKTS:CMAKY) Critical Analysis

Cullen/Frost Bankers (NYSE:CFR) and China Minsheng Banking (OTCMKTS:CMAKY) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Dividends

Cullen/Frost Bankers pays an annual dividend of $3.00 per share and has a dividend yield of 2.5%. China Minsheng Banking pays an annual dividend of $0.25 per share and has a dividend yield of 6.4%. Cullen/Frost Bankers pays out 80.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cullen/Frost Bankers has increased its dividend for 25 consecutive years.

Profitability

This table compares Cullen/Frost Bankers and China Minsheng Banking’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cullen/Frost Bankers 30.49% 10.07% 0.96%
China Minsheng Banking N/A N/A N/A

Valuation & Earnings

This table compares Cullen/Frost Bankers and China Minsheng Banking’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cullen/Frost Bankers $1.49 billion 5.05 $331.15 million $3.73 31.67
China Minsheng Banking N/A N/A N/A N/A N/A

Cullen/Frost Bankers has higher revenue and earnings than China Minsheng Banking.

Volatility and Risk

Cullen/Frost Bankers has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, China Minsheng Banking has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cullen/Frost Bankers and China Minsheng Banking, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cullen/Frost Bankers 2 2 1 0 1.80
China Minsheng Banking 0 0 0 0 N/A

Cullen/Frost Bankers currently has a consensus target price of $109.83, indicating a potential downside of 7.02%. Given Cullen/Frost Bankers’ higher probable upside, research analysts plainly believe Cullen/Frost Bankers is more favorable than China Minsheng Banking.

Insider and Institutional Ownership

81.3% of Cullen/Frost Bankers shares are held by institutional investors. 4.5% of Cullen/Frost Bankers shares are held by insiders. 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.

Summary

Cullen/Frost Bankers beats China Minsheng Banking on 10 of the 12 factors compared between the two stocks.

Cullen/Frost Bankers Company Profile

Cullen/Frost Bankers, Inc. operates as a bank holding company of Frost Bank, which engages in the provision of commercial and consumer banking services, as well as trust and investment management, mutual funds, investment banking, insurance, brokerage, leasing, asset-based lending, treasury management and item processing services. It operates through the following segments: Banking and Frost Wealth Advisors. The Banking operating segment includes both commercial and consumer banking services and Frost Insurance Agency. Commercial banking services are provided to corporations and other business clients and include a wide array of lending and cash management products; Consumer banking services include direct lending and depository services; Frost Insurance Agency provides insurance brokerage services to individuals and businesses covering corporate and personal property and casualty products, as well as group health and life insurance products and human resources consulting services. The Frost Wealth Advisors segment includes fee-based services within private trust, retirement services, and financial management services, including personal wealth management and brokerage services. Th

China Minsheng Banking Company Profile

China Minsheng Banking Corp., Ltd. provides various financial products and services to 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 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, home, medium and long term, and short-term working capital loans; micro-credit products for individuals; debit and credit cards; and safe deposit boxes. In addition, it provides payment and collection, and clearing services, as well as internet, mobile, and telephone 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, and trust financing services. Additionally, it provides convenient finance, investment banking, and asset management services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company has approximately 140 branch-level institutions, 1,178 business outlets, 1,106 community sub-branches, and 138 small business sub-branches. China Minsheng Banking Corp., Ltd. was founded in 1996 and is headquartered in Beijing, the People's Republic of China.

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