Bank of Chengdu rose 2.69%, Bank of Ningbo rose 2.53%, these two banking stocks led the banking sector. It has to be said that the performance of these two bank stocks is very excellent. Due to space issues, we will put aside the performance today and focus on comparing their recent trends, dividend rate, price-earnings ratio and other indicators to see which one is better. It's worth our investment.
In the past, I spent a lot of time in my column analyzing and dismantling Bank of Ningbo. I will also in-depth dismantle this star city commercial bank located in the southwest border in the column in the future: Bank of Chengdu. Due to limited space in this article, we only briefly analyze these three banks.
1. Bank of Chengdu
Bank of Chengdu has frequently been on the list of leading banks in the banking sector some time ago, attracting attention. We briefly analyze it from the perspective of dividend yield, stock price trend, and price-to-earnings ratio.
1, dividend rate
Bank of Chengdu paid dividends on June 29. The bank sector led the gains on the day the dividend was paid, which shows that many investors are bullish on this bank stock. Otherwise, we would not focus on buying at low prices after the dividend ex-dividends .
Bank of Chengdu's dividend rate is 5.25%, ranking 9th among the 21 banks that have paid dividends. To be honest, such a dividend rate level is relatively good among bank stocks, and it can at least outperform most bank wealth management products on the market.
2, stock price trend
Bank of Chengdu was 10.53 yuan on December 2, 2021. From then until 16.71 yuan on June 15, 2022, Bank of Chengdu has been in a rising wave, with a cumulative increase of 58.69%.
also has callbacks in this process, but they are either temporary or rapid rebounds. It went so high and rose so fast, which I never expected. At present, I still can’t tell whether it will stabilize at this level or whether there will be a major correction.
3, P/E ratio
The dynamic P/E ratio of Bank of Chengdu on June 29 was 6.89, ranking 9th among 42 bank stocks. The static P/E ratio on June 29 was 7.57, ranking 10th among 42 bank stocks.
Although the price-to-earnings ratio of Bank of Chengdu ranks in the top 25%, its value is less than half of that of the first place Lanzhou Bank . If Bank of Chengdu's performance continues to maintain rapid development, its valuation will still have greater room.
2. Bank of Ningbo
The stock price of Bank of Ningbo has been suppressed for a long time in the past. The main reason for being suppressed may be the slowdown in performance growth and investors' concerns about its limited market space.
1, dividend rate
Bank of Ningbo has not yet started dividend payment, but you don’t have to look forward to the bank’s dividend rate. The dividend rate in 2020 is 1.41%, and the dividend rate in 2019 is 1.9%, both ranking third from the bottom in the industry. name. This year won't be much different.
2, stock price trend
If you compare and observe the trend of Bank of Ningbo and the overall trend of the banking sector, you will find that their fit is relatively high. Both of them almost reached phased highs in early April and then fell all the way.
By mid-to-late May, the banking sector was trading sideways at a low level, while Bank of Ningbo never stopped falling. When the banking sector began to stop falling, Bank of Ningbo immediately started a rising trend.
3, price-earnings ratio
Bank of Ningbo's dynamic price-earnings ratio on June 29 was 10.17, ranking second among 42 bank stocks. Bank of Ningbo's static price-to-earnings ratio on June 29 was 11.9, still ranking second. There is no doubt that its adaptation rate is still very high.
3. Conclusion
These are the dividend rates, stock price trends, and price-to-earnings ratio data of the two banks. Which bank stock is more worthy of our intervention? Let's compare and analyze them in turn.
Dividend rate is actually about the risk buffering issue of long-term investment. That is, if you invest for a long time and the stock price falls, how long will it take to repay the investment by relying on the dividend rate? It is obvious that Bank of Ningbo was completely defeated by Bank of Chengdu.
stock price trends and price-to-earnings ratios are actually about the room for stock price growth. The two have to be looked at together.
Judging from the stock price trend, Bank of Ningbo is at a relatively low position, and Bank of Chengdu is at a relatively high position in history. Judging from the price-to-earnings ratio, both banks are actually quite high, and Bank of Ningbo is much higher than Bank of Chengdu.
Who has more upside potential? Bank of Ningbo is most likely stronger than Bank of Chengdu. Bank of Ningbo still has a lot of room to reach its highest position in history, while Bank of Chengdu has reached a peak of around 16 yuan for the first time in history. We don’t know to what height Bank of Chengdu will continue to reach in the future, and we don’t know whether there will be a correction in the future. Overall, its rise is more uncertain.
Taken together, the short-term risk of investing in Bank of Ningbo is lower than that of Bank of Chengdu. However, if it is a long-term investment, the dividend rate of Bank of Ningbo is lower. Once the risk occurs, the subsequent mitigation measures will be smaller. Of course, the risks of Bank of Chengdu are not small, because its position is a bit high compared to history.
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