China Merchants Bank (OTCMKTS:CIHKY – Get Free Report) and Private Bancorp of America (OTCMKTS:PBAM – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for China Merchants Bank and Private Bancorp of America, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Merchants Bank | 0 | 1 | 0 | 0 | 2.00 |
| Private Bancorp of America | 0 | 1 | 3 | 0 | 2.75 |
Private Bancorp of America has a consensus price target of $93.67, suggesting a potential upside of 10.13%. Given Private Bancorp of America’s stronger consensus rating and higher possible upside, analysts plainly believe Private Bancorp of America is more favorable than China Merchants Bank.
Insider and Institutional Ownership
Profitability
This table compares China Merchants Bank and Private Bancorp of America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Merchants Bank | 32.69% | 12.45% | 1.23% |
| Private Bancorp of America | 25.45% | 16.85% | 1.72% |
Earnings & Valuation
This table compares China Merchants Bank and Private Bancorp of America”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Merchants Bank | $65.04 billion | 2.53 | $20.89 billion | $4.15 | 7.87 |
| Private Bancorp of America | $133.06 million | 3.66 | $40.67 million | $7.70 | 11.05 |
China Merchants Bank has higher revenue and earnings than Private Bancorp of America. China Merchants Bank is trading at a lower price-to-earnings ratio than Private Bancorp of America, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
China Merchants Bank has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, Private Bancorp of America has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500.
Summary
Private Bancorp of America beats China Merchants Bank on 9 of the 13 factors compared between the two stocks.
About China Merchants Bank
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. 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 Private Bancorp of America
Private Bancorp of America, Inc. operates as the bank holding company for CalPrivate Bank that provides banking products and services to individuals and businesses in California. The company offers checking and savings, money market, certificate of deposit, sweep, zero balance, and individual retirement accounts; unsecured lines of credit, personal credit lines, and term loans; additional services, such as direct deposits, online banking, ATM and debit cards, credit cards, savings/line of credit overdraft protection, and safe deposit boxes; and certificate of deposit account registry services. It also provides treasury management, merchant card, bill pay, positive pay, e-statement, remote deposit capture, ACH origination, wire transfer, electronic payments and collections, electronic check acceptance, account reconciliation, cash vault, and gift and business credit cards, as well as funds management services. In addition, the company offers term credit facilities and loans, equipment and business expansion loans, working capital lines of credit, commercial real estate financing, construction financing, letters of credit, business start-up loans, loans for business acquisition and partner buyouts, owner-occupied commercial real estate loans, equipment, furniture and fixture, and other loans; and CDARS And ICS products. Further, it provides wealth management and legal services. The company has offices in La Jolla, San Diego, Coronado, Newport Beach, Beverly Hills, El Segundo, Temecula, Mission Valley, and Redlands. Private Bancorp of America, Inc. was founded in 2006 and is headquartered in La Jolla, California.
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