Head-To-Head Review: OVERSEA-CHINESE/ADR (OVCHY) vs. Its Peers

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OVERSEA-CHINESE/ADR (OTCMKTS: OVCHY) is one of 63 publicly-traded companies in the “Commercial banks, not elsewhere classified” industry, but how does it contrast to its rivals? We will compare OVERSEA-CHINESE/ADR to similar companies based on the strength of its analyst recommendations, valuation, institutional ownership, profitability, earnings, dividends and risk.

Volatility & Risk

OVERSEA-CHINESE/ADR has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, OVERSEA-CHINESE/ADR’s rivals have a beta of 0.91, suggesting that their average share price is 9% less volatile than the S&P 500.

Profitability

This table compares OVERSEA-CHINESE/ADR and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OVERSEA-CHINESE/ADR 31.64% 9.85% 0.90%
OVERSEA-CHINESE/ADR Competitors 18.49% 11.69% 1.05%

Analyst Recommendations

This is a summary of current recommendations and price targets for OVERSEA-CHINESE/ADR and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OVERSEA-CHINESE/ADR 0 0 0 0 N/A
OVERSEA-CHINESE/ADR Competitors 614 1725 1573 73 2.28

As a group, “Commercial banks, not elsewhere classified” companies have a potential upside of 49.14%. Given OVERSEA-CHINESE/ADR’s rivals higher probable upside, analysts plainly believe OVERSEA-CHINESE/ADR has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares OVERSEA-CHINESE/ADR and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
OVERSEA-CHINESE/ADR $9.66 billion $4.15 billion 11.92
OVERSEA-CHINESE/ADR Competitors $14.31 billion $2.40 billion 12.05

OVERSEA-CHINESE/ADR’s rivals have higher revenue, but lower earnings than OVERSEA-CHINESE/ADR. OVERSEA-CHINESE/ADR is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

0.0% of OVERSEA-CHINESE/ADR shares are held by institutional investors. Comparatively, 25.1% of shares of all “Commercial banks, not elsewhere classified” companies are held by institutional investors. 11.9% of shares of all “Commercial banks, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

OVERSEA-CHINESE/ADR pays an annual dividend of $0.51 per share and has a dividend yield of 3.0%. OVERSEA-CHINESE/ADR pays out 36.2% of its earnings in the form of a dividend. As a group, “Commercial banks, not elsewhere classified” companies pay a dividend yield of 3.1% and pay out 36.2% of their earnings in the form of a dividend. OVERSEA-CHINESE/ADR lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

OVERSEA-CHINESE/ADR rivals beat OVERSEA-CHINESE/ADR on 10 of the 12 factors compared.

OVERSEA-CHINESE/ADR Company Profile

Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides a range of products and services to individuals, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, bancassurance 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 Corporate/Investment Banking segment provides project financing, overdrafts, trade financing, and deposit accounts; fee-based services, such as cash management and custodian services; and investment banking services, including financing solutions, syndicated loans and advisory services, corporate finance services for initial public offerings, secondary fund-raising, and takeovers and mergers, as well as customized and structured equity-linked financing services. It serves corporates, public sector, and small and medium enterprises. The company's Global Treasury and Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as provision of structured treasury products and financial solutions. Its OCBC Wing Hang segment offers commercial banking, consumer financing, share brokerage, and insurance services. The company's Insurance segment provides fund management services, and life and general insurance products. Its Others segment is involved in property and investment holding activities. As of May 7, 2018, the company operated a network of 590 branches and representative offices in 18 countries and regions. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

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