Critical Contrast: UniCredit (OTCMKTS:UNCRY) versus Agri Bank China (OTCMKTS:ACGBY)

UniCredit (OTCMKTS:UNCRY) and Agri Bank China (OTCMKTS:ACGBY) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Volatility and Risk

UniCredit has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Agri Bank China has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Profitability

This table compares UniCredit and Agri Bank China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UniCredit	23.20%	16.41%	1.31%
Agri Bank China	21.14%	9.25%	0.63%

Analyst Ratings

This is a summary of recent ratings for UniCredit and Agri Bank China, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UniCredit	0	1	2	2	3.20
Agri Bank China	0	0	0	0	0.00

Earnings and Valuation

This table compares UniCredit and Agri Bank China”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UniCredit	$48.38 billion	2.92	$10.52 billion	N/A	N/A
Agri Bank China	$195.64 billion	1.23	$39.24 billion	$2.70	6.38

Agri Bank China has higher revenue and earnings than UniCredit.

Institutional and Insider Ownership

0.3% of UniCredit shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

UniCredit pays an annual dividend of $1.09 per share and has a dividend yield of 2.4%. Agri Bank China pays an annual dividend of $0.62 per share and has a dividend yield of 3.6%. Agri Bank China pays out 23.0% of its earnings in the form of a dividend.

Summary

UniCredit beats Agri Bank China on 10 of the 13 factors compared between the two stocks.

About UniCredit

UniCredit S.p.A. provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. It offers retail, private, and wealth management solutions; and institutional investor solutions. The company also provides corporate finance advisory, rating advisory, financial sponsor, patient capital, capital structure advisory, and finance solutions, as well as securities services. In addition, it offers transactional and risk management, and strategic advisory and funding services; group trade and correspondent banking services; and payments and cash management solutions. The company serves SME, corporate, multinational corporate, financial institution, and public sector clients, as well as retail, private banking, wealth management, and family office clients. The company was founded in 1870 and is headquartered in Milan, Italy.

About Agri Bank China

Agricultural Bank of China Limited, together with its subsidiaries, provides banking products and services. The company operates through Corporate Banking, Personal Banking, and Treasury Operations segments. It offers demand, personal call, foreign currency call, time or demand optional, foreign exchange call, foreign exchange time, savings, agreed term, and negotiated deposit accounts, as well as certificates of deposit; and loans, including housing, consumer, business, fixed asset, working capital, real estate, and entrusted syndicated loans, as well as trade finances, guarantees and commitments, and loans with custody of export rebates accounts. The company provides credit card, debit card, payment and settlement, private banking, cash management, investment banking, custody, financial market, and financial institution services, as well as trading and wealth management services; and personal fund collection and automatic transfer services. In addition, it offers agro-related personal and corporate banking products and services; telephone, mobile, self-service, television, and SMS banking services; financial leasing services; fund management services; asset custodian services; and insurance and reinsurance related products and services. The company operates domestic branches, including specialized institutions, training institutes, tier-1 branches, tier-2 branches, tier-1 sub-branches, foundation-level branch outlets and other establishments; overseas branches in Hong Kong, Singapore, Seoul, New York, Dubai International Financial Centre, Tokyo, Frankfurt, Sydney, Luxemburg, Dubai, London, Macao, and Hanoi; and overseas representative offices in Vancouver, Taipei, Sao Paulo, and Dushanbe. The company was founded in 1951 and is based in Beijing, the People's Republic of China.