Critical Survey: Chino Commercial Bancorp (OTCMKTS:CCBC) and Shinhan Financial Group (NYSE:SHG)

Chino Commercial Bancorp (OTCMKTS:CCBC) and Shinhan Financial Group (NYSE:SHG) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Volatility and Risk

Chino Commercial Bancorp has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Shinhan Financial Group has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

7.8% of Shinhan Financial Group shares are held by institutional investors. 32.5% of Chino Commercial Bancorp shares are held by insiders. Comparatively, 1.0% of Shinhan Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Chino Commercial Bancorp and Shinhan Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chino Commercial Bancorp	20.17%	N/A	N/A
Shinhan Financial Group	12.21%	7.24%	0.58%

Analyst Recommendations

This is a summary of recent ratings for Chino Commercial Bancorp and Shinhan Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chino Commercial Bancorp	0	0	0	0	N/A
Shinhan Financial Group	0	0	1	0	3.00

Earnings & Valuation

This table compares Chino Commercial Bancorp and Shinhan Financial Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chino Commercial Bancorp	$21.37 million	1.95	$4.94 million	$1.54	8.44
Shinhan Financial Group	$25.42 billion	0.78	$3.49 billion	$6.37	6.14

Shinhan Financial Group has higher revenue and earnings than Chino Commercial Bancorp. Shinhan Financial Group is trading at a lower price-to-earnings ratio than Chino Commercial Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Shinhan Financial Group beats Chino Commercial Bancorp on 8 of the 12 factors compared between the two stocks.

About Chino Commercial Bancorp

Chino Commercial Bancorp operates as the bank holding company for Chino Commercial Bank, N.A. that provides commercial banking services to individuals and small businesses primarily in the Inland Empire region of Southern California. The company's deposit products include non-interest bearing deposits, money market accounts, NOW and savings accounts, and certificates of deposit accounts. It also provides loan products, such as one-to-four family residential, residential, construction, commercial real estate, and commercial and industrial loans, as well as loans to individuals for overdraft protection and personal lines of credit. In addition, the company offers credit and debit card, wire transfer, and online and mobile banking services. It operates full-service branches in Chino, Ontario, Rancho Cucamonga, and Upland, California. The company was founded in 1999 and is headquartered in Chino, California.

About Shinhan Financial Group

Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The company operates through six segments: Banking, Credit Card, Securities, Insurance, Credit, and Others. It offers retail banking services, including demand, savings, and fixed deposit-taking; checking accounts; mortgage and home equity, and retail lending; electronic banking and automatic teller machines (ATM); and bill paying, payroll and check-cashing, currency exchange, and wire fund transfer services. The company also provides corporate banking services, such as investment banking, real estate financing, overseas real estate and development project financing, infrastructure and structured financing, equity/venture investments, mergers and acquisitions consulting; securitization and derivatives services comprising securities and derivative products, and foreign exchange trading; business expansion financing and consulting services; and working capital loans and facilities loans. In addition, it is involved in treasury and investment activities in international capital markets consisting of foreign currency-denominated securities trading, foreign exchange trading and services, trade-related financial services, international factoring services, and foreign banking operations. Further, the company offers real estate trust, investment advisory, venture business investment, life and non-life insurance, trust account management, securities brokerage, and asset management services, as well as leasing and equipment financing, savings banking, loan collection and credit reporting, collective investment administration, private equity investment, and financial system development services. Additionally, it provides transaction history inquiries and fund transfers, opening letters of credit, trade finance, payment and collection management, sales and acquisition settlement, business-to-business settlement, sweeping, pooling, ERP interface, host-to-host banking, SWIFT SCORE, and cash and liquidity management service. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea.