China Merchants Bank (OTCMKTS:CIHKY – Get Free Report) and Argo Blockchain (NASDAQ:ARBK – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.
Institutional and Insider Ownership
2.4% of Argo Blockchain shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
China Merchants Bank has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Argo Blockchain has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Merchants Bank | 0 | 0 | 0 | 0 | N/A |
| Argo Blockchain | 0 | 2 | 0 | 0 | 2.00 |
Argo Blockchain has a consensus price target of $1.45, indicating a potential upside of 24.46%. Given Argo Blockchain’s higher probable upside, analysts clearly believe Argo Blockchain is more favorable than China Merchants Bank.
Valuation and Earnings
This table compares China Merchants Bank and Argo Blockchain”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Merchants Bank | $70.40 billion | 1.75 | $20.71 billion | $3.89 | 6.27 |
| Argo Blockchain | $50.56 million | 1.47 | -$35.03 million | ($0.81) | -1.44 |
China Merchants Bank has higher revenue and earnings than Argo Blockchain. Argo Blockchain is trading at a lower price-to-earnings ratio than China Merchants Bank, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares China Merchants Bank and Argo Blockchain’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Merchants Bank | 30.16% | 13.43% | 1.28% |
| Argo Blockchain | -93.70% | -4,172.69% | -50.32% |
Summary
China Merchants Bank beats Argo Blockchain on 7 of the 10 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 Argo Blockchain
Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.
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