Raiffeisen Bank International (OTCMKTS:RAIFY) & ZTE (OTCMKTS:ZTCOY) Critical Survey

ZTE (OTCMKTS:ZTCOY) and Raiffeisen Bank International (OTCMKTS:RAIFY) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Profitability

This table compares ZTE and Raiffeisen Bank International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZTE	5.89%	13.25%	4.04%
Raiffeisen Bank International	16.66%	11.90%	1.16%

Volatility & Risk

ZTE has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Raiffeisen Bank International has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.

Dividends

ZTE pays an annual dividend of $0.07 per share and has a dividend yield of 1.7%. Raiffeisen Bank International pays an annual dividend of $0.21 per share and has a dividend yield of 4.7%. ZTE pays out 14.9% of its earnings in the form of a dividend. Raiffeisen Bank International pays out 11.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Raiffeisen Bank International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and target prices for ZTE and Raiffeisen Bank International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZTE	0	0	0	0	N/A
Raiffeisen Bank International	0	0	0	0	N/A

Earnings & Valuation

This table compares ZTE and Raiffeisen Bank International’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZTE	$17.75 billion	0.53	$1.06 billion	$0.47	8.60
Raiffeisen Bank International	$15.88 billion	N/A	$2.58 billion	$1.89	2.38

Raiffeisen Bank International has lower revenue, but higher earnings than ZTE. Raiffeisen Bank International is trading at a lower price-to-earnings ratio than ZTE, indicating that it is currently the more affordable of the two stocks.

Summary

Raiffeisen Bank International beats ZTE on 6 of the 10 factors compared between the two stocks.

About ZTE

ZTE Corporation provides integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer systems, core networks, telecommunication software systems and services, and other technologies and product solutions for meeting carries' requirements. The Consumer Business segment offers smart phones, mobile data terminals, family terminals, and fusion terminals, as well as related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.

About Raiffeisen Bank International

Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.