Critical Survey: Bank of Communications (OTCMKTS:BCMXY) versus NSK (OTCMKTS:NPSKY)

NSK (OTCMKTS:NPSKY) and Bank of Communications (OTCMKTS:BCMXY) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for NSK and Bank of Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NSK	0	0	0	0	N/A
Bank of Communications	0	0	0	0	N/A

Profitability

This table compares NSK and Bank of Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NSK	N/A	N/A	N/A
Bank of Communications	17.24%	8.84%	0.68%

Dividends

NSK pays an annual dividend of $0.23 per share and has a dividend yield of 2.4%. Bank of Communications pays an annual dividend of $1.13 per share and has a dividend yield of 6.1%.

Earnings and Valuation

This table compares NSK and Bank of Communications’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NSK	$5.46 billion	N/A	$58.89 million	N/A	N/A
Bank of Communications	$77.53 billion	0.71	$13.69 billion	N/A	N/A

Bank of Communications has higher revenue and earnings than NSK.

Volatility and Risk

NSK has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Bank of Communications has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Summary

Bank of Communications beats NSK on 6 of the 8 factors compared between the two stocks.

About NSK

NSK Ltd., together with its subsidiaries, manufactures and sells industrial machinery bearings, automotive products, and precision machinery and parts worldwide. Its products include ball bearings; roller bearings; bearing units; super precision bearings; bearings for steel industry, mining and construction, papermaking machines, and pumps and compressors; and bearings for special environments, including sanitary, corrosive, vacuum, cleanroom, high-temperature, non-magnetic requirement, and dust-contaminated environments. The company also provides automotive products, which comprise chassis products, such as electric power steerings, steering column and intermediate shafts, brake systems, and hub unit bearings; power train products comprising engine parts and electrical accessories, automatic and manual transmission, products for motorcycles and all-terrain vehicles, half toroidal CVT POWERTOROS units, and differential gear and propeller shafts. In addition, it offers precision machine components, including ball screws, linear guides, monocarriers, XY tables, and spindles; and accessories, including ball screw support bearings, air bearings, and clean grease, as well as support units for heavy and light loads, machine tools, and small equipment. Further, the company provides megatorque motors and maintenance services. It serves agriculture, automotive, cement, food processing machinery, industrial motor, gearbox, injection molding machine, machine tool, medical device, mining and construction, motorcycle, office equipment, palm oil, papermaking machinery, pump and compressor, railway, semiconductor, steel, sugar, and wind turbine industries. NSK Ltd. was incorporated in 1916 and is headquartered in Tokyo, Japan.

About Bank of Communications

Bank of Communications Co., Ltd. provides commercial banking products and services. It offers personal deposit products including savings, and personal certificate and structured deposits; personal loan, consumption, housing, mortgage loan, commercial housing, and business loans; and debit and credit card services. The company also provides investment services, which includes funds, insurance, financial products, trust, asset management, and precious metals and commodities trading services, as well as operates banking securities and future business; exclusive services, such as ward fortune, salary payment, community finance, value-added, and junior finance. In addition, it offers foreign exchange services comprising personal foreign exchange settlement and sale, exchange trading, and international money transfer services, as well as cross-border study abroad finance, and business travel services. Further, the company provides business banking services, which includes deposit wealth and cash management, industry chain and government, auto, and shipping finance, as well as investment banking, asset custody, and enterprise annuity account management services; and basic, online and international trade finance, and billing services. It also offers international business services, such as cross-border, exchange rate management, foreign exchange wealth management, international settlement, trade finance, letter of credit, and correspondent banking, as well as operates domestic and overseas linkage, and electronic business. Additionally, it provides bond underwriting, and equity financing and supporting M&A advisory and financing services; offshore and trust business services; leasing services; consignment financial management services; and operates bank-securities, insurance, non-banking financial institution, financial market, money and bond market, forex, and derivatives. The company was founded in 1908 and is headquartered in Shanghai, the People's Republic of China.