Financial Analysis: Deutsche Post (OTCMKTS:DPSGY) and Sinotrans (OTC:SNOTF)

Profitability

This table compares Deutsche Post and Sinotrans’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Post	5.32%	20.75%	7.21%
Sinotrans	N/A	N/A	N/A

Institutional & Insider Ownership

17.8% of Sinotrans shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Deutsche Post and Sinotrans”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Post	$99.52 billion	0.61	$5.65 billion	$4.20	11.75
Sinotrans	N/A	N/A	N/A	$0.24	1.83

Deutsche Post has higher revenue and earnings than Sinotrans. Sinotrans is trading at a lower price-to-earnings ratio than Deutsche Post, indicating that it is currently the more affordable of the two stocks.

Dividends

Deutsche Post pays an annual dividend of $1.44 per share and has a dividend yield of 2.9%. Sinotrans pays an annual dividend of $0.05 per share and has a dividend yield of 11.4%. Deutsche Post pays out 34.3% of its earnings in the form of a dividend. Sinotrans pays out 20.8% 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. Sinotrans is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Deutsche Post beats Sinotrans on 6 of the 9 factors compared between the two stocks.

About Deutsche Post

Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.

About Sinotrans

Sinotrans Limited provides integrated logistics services primarily in the People’s Republic of China. The company operates through three segments: Agency and Related Business, Professional Logistics, and E-commerce. It offers sea freight forwarding, such as space booking, arranging transportation, container delivery and loading, storage, port concentration and dispatch, customs declaration and inspection, distribution, and delivery; air freight forwarding, including pick-up and dispatch, warehousing, packaging, booking and handling, trunk air line freight forwarding, and trucking transit services; rail freight forwarding services; shipping agency services comprising port arrival and departure, documentation, ship supplies, and other ship related services at ports; and storage and yard services, such as storage, container consolidating and devanning, cargo loading and unloading, dispatching and distribution, etc. The company also engages in the e-commerce business consisting of cross-border e-commerce logistics, logistics e-commerce platform, and logistics equipment sharing platform. In addition, it provides integrated logistics solutions, including contract, project, chemical, cold chain, and other logistics services. The company was founded in 1950 and is based in Beijing, the People’s Republic of China.