Onex (OTCMKTS:ONEXF) and China CITIC Bank (OTCMKTS:CHCJY) Critical Contrast

China CITIC Bank (OTCMKTS:CHCJY) and Onex (OTCMKTS:ONEXF) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Insider & Institutional Ownership

0.7% of Onex shares are owned by institutional investors. 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

China CITIC Bank pays an annual dividend of $0.40 per share and has a dividend yield of 3.3%. Onex pays an annual dividend of $0.29 per share and has a dividend yield of 0.4%. Onex pays out 3.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for China CITIC Bank and Onex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China CITIC Bank	0	0	0	0	0.00
Onex	0	0	0	1	4.00

Profitability

This table compares China CITIC Bank and Onex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China CITIC Bank	17.31%	8.82%	0.73%
Onex	68.14%	7.94%	5.21%

Risk and Volatility

China CITIC Bank has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, Onex has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Valuation and Earnings

This table compares China CITIC Bank and Onex”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China CITIC Bank	$53.73 billion	0.56	$9.47 billion	N/A	N/A
Onex	$1.13 billion	5.20	$529.00 million	$8.81	8.97

China CITIC Bank has higher revenue and earnings than Onex.

Summary

Onex beats China CITIC Bank on 8 of the 13 factors compared between the two stocks.

About China CITIC Bank

China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.

About Onex

Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; Boston, Massachusetts and London, United Kingdom.