China Merchants Bank (OTCMKTS:CIHKY – Get Rating) and CompoSecure (NASDAQ:CMPO – Get Rating) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk & Volatility
China Merchants Bank has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, CompoSecure has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500.
This table compares China Merchants Bank and CompoSecure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Merchants Bank||27.30%||16.13%||1.38%|
This is a breakdown of current ratings and price targets for China Merchants Bank and CompoSecure, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Merchants Bank||0||1||0||0||2.00|
CompoSecure has a consensus target price of $16.00, suggesting a potential upside of 201.32%. Given CompoSecure’s stronger consensus rating and higher possible upside, analysts clearly believe CompoSecure is more favorable than China Merchants Bank.
Earnings and Valuation
This table compares China Merchants Bank and CompoSecure’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Merchants Bank||$69.83 billion||2.20||$18.59 billion||$3.72||8.20|
|CompoSecure||$267.95 million||0.30||$13.51 million||N/A||N/A|
China Merchants Bank has higher revenue and earnings than CompoSecure.
China Merchants Bank beats CompoSecure on 6 of the 10 factors compared between the two stocks.
About China Merchants Bank (Get Rating)
China Merchants Bank Co., Ltd., together with its subsidiaries, provides various banking products and services. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. The company offers current, demand, time, call, savings, notice, and renminbi accounts. Its loan products include personal commercial real estate, consumption, housing, and car loans; loans to finance for studying abroad; micro-business loans; mortgage loans for equipment; joint guarantee, special guarantee, and housing mortgage loan; bank acceptance, discount, liquid capital, and fixed asset loans; and loans for vessels. The company also offers credit cards; insurance products; open-ended funds; discount and guarantees for commercial bills, redemption of commercial bills, and guaranteed discount for commercial acceptance bills; and financial consultation, debt financing underwriting, merger and acquisition financing, and equity financing and enterprise listing services. In addition, it provides forfeiting and risk participation, escrow, cross-border RMB clearing, and interbank services; and risk and financial management, cross-border RMB and oversea financing, international factoring and settlement, and trade finance services. Further, the company offers financial leasing and guarantee, investment and wealth management, forex option and gold trading, forex express trading, international, offshore and private banking, custody, pension, and electronic banking services. As of December 31, 2021, it operated 143 branches; 1,770 sub-branches; one branch-level operation center; 2,812 self-service centers; 6,592 self-service machines; one representative office; 14,746 visual counters in Mainland China. The company also operates in Hong Kong, New York, London, Singapore, Luxembourg, Sydney, and Taipei. China Merchants Bank Co., Ltd. was founded in 1987 and is headquartered in Shenzhen, China.
About CompoSecure (Get Rating)
CompoSecure, Inc. manufactures and designs metal, plastic, composite ID, and proprietary financial transaction cards in the United States and internationally. Its primary metal form factors include embedded, metal veneer lite, metal veneer, and full metal products. The company also offers Arculus Cold Storage Wallet, a three-factor authentication solution, which comprise the Arculus Key card Cold Storage hardware device and companion Arculus Wallet mobile App to keep the Private Key in the Arculus Key card highly secure and store cryptocurrency and digital assets. It serves financial institutions, plastic card manufacturers, government agencies, system integrators, and security specialists. The company was founded in 1910 and is based in Somerset, New Jersey.
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