Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) and Bank of China (OTCMKTS:BACHY – Get Free Report) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Valuation & Earnings
This table compares Industrial & Commercial Bank of China Ltd. and Bank of China”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Industrial & Commercial Bank of China Ltd. | $208.16 billion | 1.58 | $51.27 billion | $2.84 | 6.49 |
| Bank of China | $169.73 billion | 1.34 | $33.81 billion | $2.57 | 6.86 |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Industrial & Commercial Bank of China Ltd. and Bank of China, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Industrial & Commercial Bank of China Ltd. | 0 | 1 | 0 | 0 | 2.00 |
| Bank of China | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares Industrial & Commercial Bank of China Ltd. and Bank of China’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Industrial & Commercial Bank of China Ltd. | 24.78% | 8.95% | 0.71% |
| Bank of China | 20.09% | 7.81% | 0.67% |
Dividends
Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.75 per share and has a dividend yield of 4.1%. Bank of China pays an annual dividend of $0.55 per share and has a dividend yield of 3.1%. Industrial & Commercial Bank of China Ltd. pays out 26.4% of its earnings in the form of a dividend. Bank of China pays out 21.4% 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.
Volatility & Risk
Industrial & Commercial Bank of China Ltd. has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Bank of China has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.
Summary
Industrial & Commercial Bank of China Ltd. beats Bank of China on 9 of the 11 factors compared between the two stocks.
About Industrial & Commercial Bank of China Ltd.
Industrial and Commercial Bank of China Limited, together with its subsidiaries, provides banking products and services in the People's Republic of China and internationally. The company operates through Corporate Banking, Personal Banking, and Treasury Operations segments. The Corporate Banking segment offers financial products and services to corporations, government agencies, and financial institutions. Its products and services include trade financing, deposit, corporate wealth management, custody, and various corporate intermediary services, as well as corporate loans. Its Personal Banking segment provides financial products and services to individual customers. This segment's products and services comprise personal loans and cards, deposits, and personal wealth management and intermediary services. The Treasury Business segment is involved in the money market transactions, investment securities, and proprietary and foreign exchange transactions businesses. It also offers e-banking services, investment banking, financial leasing, and insurance services. Industrial and Commercial Bank of China Limited was incorporated in 1984 and is based in Beijing, the People's Republic of China.
About Bank of China
Bank of China Limited, together with its subsidiaries, provides various banking and financial services in Chinese Mainland, Hong Kong, Macao, Taiwan, and internationally. It operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other. The Corporate Banking segment provides current accounts, deposits, overdrafts, loans, payments and settlements, trade-related products, and other credit facilities, as well as foreign currency, derivative, and wealth management products for corporate customers, government authorities, and financial institutions. The Personal Banking segment offers savings deposits, personal loans, credit cards and debit cards, payments and settlements, wealth management, and funds and insurance agency services to retail customers. The Treasury Operations segment offers foreign exchange transactions, customer-based interest rate, and foreign exchange derivative transactions, as well as money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment provides debt and equity underwriting and financial advisory, sale and trading of securities, stock brokerage, investment research, asset management services, and private equity investment services. The Insurance segment provides underwriting services for general and life insurance business, and insurance agency services. In addition, the company operates debt-to-equity swaps and other supporting, and aircraft and financial leasing business. The company was founded in 1912 and is headquartered in Beijing, China.
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