Head-To-Head Survey: Oversea-Chinese Banking (OTCMKTS:OVCHY) versus Suruga Bank (OTCMKTS:SUGBY)

Oversea-Chinese Banking (OTCMKTS:OVCHY) and Suruga Bank (OTCMKTS:SUGBY) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Earnings & Valuation

This table compares Oversea-Chinese Banking and Suruga Bank’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oversea-Chinese Banking	$18.42 billion	2.73	$5.23 billion	N/A	N/A
Suruga Bank	$633.45 million	2.25	$106.09 million	$5.24	13.78

Oversea-Chinese Banking has higher revenue and earnings than Suruga Bank.

Dividends

Oversea-Chinese Banking pays an annual dividend of $1.24 per share and has a dividend yield of 5.6%. Suruga Bank pays an annual dividend of $1.34 per share and has a dividend yield of 1.9%. Suruga Bank pays out 25.6% of its earnings in the form of a dividend.

Volatility and Risk

Oversea-Chinese Banking has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Suruga Bank has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Oversea-Chinese Banking and Suruga Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oversea-Chinese Banking	0	0	0	0	N/A
Suruga Bank	0	0	0	0	N/A

Institutional and Insider Ownership

0.0% of Oversea-Chinese Banking shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Oversea-Chinese Banking and Suruga Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oversea-Chinese Banking	N/A	N/A	N/A
Suruga Bank	16.87%	5.70%	0.46%

Summary

Oversea-Chinese Banking beats Suruga Bank on 7 of the 10 factors compared between the two stocks.

About Oversea-Chinese Banking

Oversea-Chinese Banking Corporation Limited engages in the provision of financial services in Singapore, Malaysia, Indonesia, Greater China, rest of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high-net-worth individuals. Its Global Wholesale Banking segment provides long-term project financing, short-term credit, working capital, and trade financing; customized and structured equity-linked financing products; cash management and custodian services; capital market solutions; corporate finance and advisory banking services; and treasury products. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as structured treasury products and financial solutions. Its Insurance segment provides fund management services, and life and general insurance products. The company's Others segment is involved in property and investment holding activities. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

About Suruga Bank

Suruga Bank Ltd. provides various banking and financial products and services to individuals and corporate customers in Japan. The company offers deposit products, such as time, ordinary, savings, foreign currency, and other deposits, as well as current and general accounts; card, housing, second house, startup, and business up term loans, as well as loans by purpose; credit and debit cards; overdrafts; and other financing products. It also provides investment trust, public bond, pension contribution, insurance, inheritance/trust, lottery, foreign currency, pay-easy, web direct, safe deposit box, external linkage, foreign remittance, fund management, e-combination, payment, nursing care/medical care/dispensing compensation receivable factoring, mortgage, and Internet and telephone banking services. In addition, the company offers staffing, money lending, guarantee, printing, leasing, and agency services. The company was incorporated in 1895 and is headquartered in Numazu, Japan.