ZTE (OTCMKTS:ZTCOY) vs. Raiffeisen Bank International (OTCMKTS:RAIFY) Financial Survey

Raiffeisen Bank International (OTCMKTS:RAIFY) and ZTE (OTCMKTS:ZTCOY) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Volatility and Risk

Raiffeisen Bank International has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, ZTE has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Earnings & Valuation

This table compares Raiffeisen Bank International and ZTE’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Raiffeisen Bank International	$15.88 billion	N/A	$2.58 billion	$1.89	2.38
ZTE	$17.75 billion	0.53	$1.06 billion	$0.47	8.60

Raiffeisen Bank International has higher earnings, but lower revenue than ZTE. Raiffeisen Bank International is trading at a lower price-to-earnings ratio than ZTE, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Raiffeisen Bank International and ZTE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raiffeisen Bank International	16.66%	11.90%	1.16%
ZTE	5.89%	13.25%	4.04%

Dividends

Raiffeisen Bank International pays an annual dividend of $0.21 per share and has a dividend yield of 4.7%. ZTE pays an annual dividend of $0.07 per share and has a dividend yield of 1.7%. Raiffeisen Bank International pays out 11.1% of its earnings in the form of a dividend. ZTE pays out 14.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Raiffeisen Bank International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings for Raiffeisen Bank International and ZTE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raiffeisen Bank International	0	0	0	0	N/A
ZTE	0	0	0	0	N/A

Summary

Raiffeisen Bank International beats ZTE on 6 of the 10 factors compared between the two stocks.

About Raiffeisen Bank International

Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.

About ZTE

ZTE Corporation provides integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer systems, core networks, telecommunication software systems and services, and other technologies and product solutions for meeting carries' requirements. The Consumer Business segment offers smart phones, mobile data terminals, family terminals, and fusion terminals, as well as related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.