Analyzing Shin-Etsu Chemical (OTCMKTS:SHECY) and Bank of East Asia (OTCMKTS:BKEAY)

Earnings and Valuation

This table compares Shin-Etsu Chemical and Bank of East Asia”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shin-Etsu Chemical	$16.73 billion	3.59	$3.44 billion	$0.90	16.79
Bank of East Asia	$5.67 billion	0.67	$590.53 million	N/A	N/A

Shin-Etsu Chemical has higher revenue and earnings than Bank of East Asia.

Volatility and Risk

Shin-Etsu Chemical has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Bank of East Asia has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Shin-Etsu Chemical shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Shin-Etsu Chemical and Bank of East Asia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shin-Etsu Chemical	21.64%	11.27%	9.75%
Bank of East Asia	N/A	N/A	N/A

Dividends

Shin-Etsu Chemical pays an annual dividend of $0.23 per share and has a dividend yield of 1.5%. Bank of East Asia pays an annual dividend of $0.07 per share and has a dividend yield of 4.8%. Shin-Etsu Chemical pays out 25.6% of its earnings in the form of a dividend.

Summary

Shin-Etsu Chemical beats Bank of East Asia on 8 of the 10 factors compared between the two stocks.

About Shin-Etsu Chemical

Shin-Etsu Chemical Co., Ltd. provides infrastructure, electronics, and functional materials in Japan. It is also involved in processing and specialized related services. The company operates through Infrastructure Materials; Electronics Materials; Functional Materials; and Processing and Specialized Services segments. In addition, it offers cellulose derivatives, synthetic pheromones, aroma chemicals, dielectric and LED/ semiconductor materials, silanes, photoresists, chlorides, caustic soda, liquid fluoroelastomers, polyvinyl chloride and vinyl acetate resin, silicones, and silicones processed goods. Further, the company offers pellicles, photomask blanks, synthetic quartz/ quartz cloth, pyrolytic boron nitride, LIB anode material, and silicon metal. Additionally, it provides rare earth magnets, compound semiconductors, and oxide single crystals. The company was formerly known as Shin-Etsu Nitrogen Fertilizer Co., Ltd. and changed its name to Shin-Etsu Chemical Co., Ltd. in 1940. Shin-Etsu Chemical Co., Ltd. was incorporated in 1926 and is headquartered in Tokyo, Japan.

About Bank of East Asia

The Bank of East Asia, Limited, together with its subsidiaries, provides various banking and related financial services. Its personal banking services include corporate, individual, savings, current, time deposit, and supreme accounts; and time deposits, foreign currency deposits, MAS services, and auto-payroll products, as well as safe deposit boxes and remittance services. The company also provides corporate banking services, such as SME loans and financing guarantee schemes; corporate and commercial financing products, including syndicated and construction loans, acquisition and structured financing, working capital financing, share financing and IPO-related loans, and commercial mortgages; trade finance services and expert trade solutions; factoring services; import and export trade finance; guarantee services; eTradeConnect that allows buyers and sellers to connect, transact, share information, and submit applications for financing through a single platform; cash management services; corporate wealth management products; foreign exchange and treasury products; and marine cargo, property, trade credit, employee compensation, life, savings, and endowment insurance plans. In addition, it offers private banking services comprising investment advisory services; investment solutions, such as unit trusts, linked deposits, currency trading and management, global equities and bonds investments, structured products, and options and derivatives; portfolio management services; securities and futures broking services; cyber banking, credit cards, and ATM; and various international services. The company operates outlets in Hong Kong, rest of Greater China, Singapore, Malaysia, the United Kingdom, and the United States. The Bank of East Asia, Limited was incorporated in 1918 and is headquartered in Central, Hong Kong.