Critical Contrast: CHINA MERCHANTS/ADR (CIHKY) vs. Weidai (WEI)

CHINA MERCHANTS/ADR (OTCMKTS:CIHKY) and Weidai (NYSE:WEI) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for CHINA MERCHANTS/ADR and Weidai, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CHINA MERCHANTS/ADR 0 0 0 0 N/A
Weidai 0 0 2 0 3.00

Weidai has a consensus target price of $13.00, indicating a potential upside of 37.57%. Given Weidai’s higher possible upside, analysts clearly believe Weidai is more favorable than CHINA MERCHANTS/ADR.

Profitability

This table compares CHINA MERCHANTS/ADR and Weidai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CHINA MERCHANTS/ADR 22.85% 16.71% 1.21%
Weidai N/A N/A N/A

Insider & Institutional Ownership

0.0% of CHINA MERCHANTS/ADR shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares CHINA MERCHANTS/ADR and Weidai’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CHINA MERCHANTS/ADR $46.95 billion 0.38 $10.38 billion N/A N/A
Weidai $535.79 million 1.23 $71.75 million N/A N/A

CHINA MERCHANTS/ADR has higher revenue and earnings than Weidai.

Dividends

CHINA MERCHANTS/ADR pays an annual dividend of $0.53 per share and has a dividend yield of 2.7%. Weidai does not pay a dividend.

Summary

CHINA MERCHANTS/ADR beats Weidai on 7 of the 10 factors compared between the two stocks.

About CHINA MERCHANTS/ADR

China Merchants Bank Co., Ltd. provides various wholesale and retail banking products and services in the People's Republic of China and internationally. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. The company offers time, demand, call, notice, and RMB deposits; and deposit, current, and capital accounts. It also provides personal commercial real estate, consumption, housing, and car loans, as well as loans to finance for studying abroad; micro-business, combo, guarantee, and housing mortgage loans; mortgage loans for equipment; bank acceptance, discount, liquid capital, and fixed asset loans; and financial leasing, third-party payment, and guarantee services, as well as loans for vessels. In addition, the company offers investment and wealth management, and insurance products; individual forex option and express, and gold trading services; open ended funds; private banking and cash management services; and financial consultation, debt financing underwriting, merger and acquisition financing, and equity financing and enterprise listing services. Further, it provides settlement and trade chain financing services; international business, wealth investment, risk and financial management, cross border RMB financing, international factoring and settlement, oversea financing, and trade finance services; and forfeiting and risk participation, cross border RMB clearing, interbank business, and escrow services. Additionally, the company offers instruments; custody and pension services; credit cards; and Internet and mobile banking services. As of December 31, 2017, it had 137 branches; 1,681 sub-branches; 1 branch-level operation center; 1 representative office; 3,340 self-service centers; 11,382 self-service machines, including 1,610 automatic teller machines, and 9,772 deposit-taking and cash withdrawal machines; and 12,936 visual counters. The company was founded in 1987 and is headquartered in Shenzhen, China.

About Weidai

Weidai Ltd., through its subsidiaries, provides auto-backed financing solutions in the People's Republic of China. Its auto-backed financing platform connects borrowers primarily mall and micro enterprise owners with online investors and institutional funding partners. The company was founded in 2011 and is headquartered in Hangzhou, the People's Republic of China.

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