Financial Review: Bank of Communications (OTCMKTS:BCMXY) and Hon Hai Precision Industry (OTCMKTS:HNHPF)

Profitability

This table compares Hon Hai Precision Industry and Bank of Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hon Hai Precision Industry	N/A	N/A	N/A
Bank of Communications	15.61%	7.57%	0.60%

Valuation & Earnings

This table compares Hon Hai Precision Industry and Bank of Communications”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hon Hai Precision Industry	$214.59 billion	N/A	$4.99 billion	N/A	N/A
Bank of Communications	$78.35 billion	0.76	$13.10 billion	$4.02	4.98

Bank of Communications has lower revenue, but higher earnings than Hon Hai Precision Industry.

Risk and Volatility

Hon Hai Precision Industry has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Bank of Communications has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500.

Dividends

Hon Hai Precision Industry pays an annual dividend of $0.23 per share and has a dividend yield of 1.8%. Bank of Communications pays an annual dividend of $1.11 per share and has a dividend yield of 5.6%. Bank of Communications pays out 27.6% of its earnings in the form of a dividend.

Summary

Bank of Communications beats Hon Hai Precision Industry on 5 of the 8 factors compared between the two stocks.

About Hon Hai Precision Industry

Hon Hai Precision Industry Co., Ltd. provides electronic OEM services. The company offers consumer electronics comprising of television sets, game consoles, set-top boxes, and speakers. It also provides cloud networking products consisting of routers, servers, edge computing, data centers, and satellite communications and other related equipment. In addition, the company offers desktop computers, notebook computers, tablets, business machines, printers, etc. Further, it provides connectors, precision optical components, lenses, electronic components, semiconductor products, automotive electronic parts, cutting tools/mold fixtures, and mechanical equipment. The company operates in Taiwan, Mainland China, India, Japan, Vietnam, Malaysia, Singapore, the Czech Republic, Hungary, Slovakia, the United States, Brazil, and Mexico. Hon Hai Precision Industry Co., Ltd. was founded in 1974 and is headquartered in New Taipei City, Taiwan.

About Bank of Communications

Bank of Communications Co., Ltd. provides commercial banking products and services in China. The company offers savings deposit products, including demand deposits, lump-sum deposits and withdrawal, time deposit of small savings for lump-sum withdrawal, interest withdrawal on principal deposited, time-demand deposit, call deposit, swap management, and education deposit; personal certificate of deposit; salary financing A; and foreign currency deposit. It also provides credit, quasi-credit, and debit cards; new housing and second-hand mortgage loans and unsecured personal loans; personal wealth management advisor services; and precious metal and commodity trading services. In addition, the company offers corporate structured deposit and corporate certificate of deposit; corporate cash management; industrial chain finance program comprising prepayment financing, inventory financing, accounts receivable financing and accounts payable financing; syndicated loans; corporation overdraft; investment banking services; and offshore banking services, such as repayment financing, inventory financing, accounts receivable financing and accounts payable financing, and forex currencies. Further, it provides bond account activation, bond distribution, and transaction services; related bond escrow and settlement, pledge registration, and principal and interest payment services; training and consulting services for cooperative banks; cross-border inter-bank payments system services; consignment sales of precious metal products; bond underwriting distribution; third party bond depository services; bank derivatives transfer; b-share transfer; bankfutures transfer; standard warehouse warrant pledged financing; institutional investment consulting, wealth management, and insurance services; and clearing and settlement services for future markets. The company was founded in 1908 and is headquartered in Shanghai, the People’s Republic of China.