Critical Comparison: DNB Financial (NASDAQ:DNBF) and Industrial & Cmrcl Bnk f China (NASDAQ:IDCBY)
DNB Financial (NASDAQ:DNBF) and Industrial & Cmrcl Bnk f China (OTCMKTS:IDCBY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Insider and Institutional Ownership
37.1% of DNB Financial shares are held by institutional investors. Comparatively, 0.0% of Industrial & Cmrcl Bnk f China shares are held by institutional investors. 12.1% of DNB Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares DNB Financial and Industrial & Cmrcl Bnk f China’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Industrial & Cmrcl Bnk f China||25.72%||11.87%||1.02%|
Volatility and Risk
DNB Financial has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Industrial & Cmrcl Bnk f China has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.
This is a summary of current ratings and target prices for DNB Financial and Industrial & Cmrcl Bnk f China, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Industrial & Cmrcl Bnk f China||0||1||0||0||2.00|
DNB Financial pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. Industrial & Cmrcl Bnk f China pays an annual dividend of $0.62 per share and has a dividend yield of 4.9%. DNB Financial pays out 11.3% of its earnings in the form of a dividend. Industrial & Cmrcl Bnk f China pays out 25.4% 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.
Valuation & Earnings
This table compares DNB Financial and Industrial & Cmrcl Bnk f China’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DNB Financial||$51.37 million||3.90||$10.68 million||$2.48||18.63|
|Industrial & Cmrcl Bnk f China||$171.73 billion||1.32||$45.18 billion||$2.44||5.20|
Industrial & Cmrcl Bnk f China has higher revenue and earnings than DNB Financial. Industrial & Cmrcl Bnk f China is trading at a lower price-to-earnings ratio than DNB Financial, indicating that it is currently the more affordable of the two stocks.
DNB Financial beats Industrial & Cmrcl Bnk f China on 7 of the 13 factors compared between the two stocks.
DNB Financial Company Profile
DNB Financial Corporation operates as the bank holding company for DNB First, National Association that provides a range of commercial banking products and services to individuals and small to medium sized businesses. The company offers deposit products, including money market, savings, demand, and NOW accounts; and time deposits, as well as certificates of deposit, including IRAs and brokered deposits. It also provides loan products comprising fixed and variable rate loans; funds for the purchase of business property or ventures, working capital lines, small business administration loans, and lease financing for equipment and for various other purposes; and home equity and home mortgages, as well as term loans for the purchase of consumer goods. In addition, it offers cash management, remote capture, Internet banking, letters of credit, and other lending services, as well as commercial sweep accounts; and various investment and insurance products, such as fixed and variable annuities, 401(k) plans and rollovers, stocks, self-directed and managed IRAs, bonds, mutual funds, brokerage, long term care insurance, 529 college savings plans, life insurance, separately managed investment accounts, disability insurance, and self-employed pension plans. Further, the company provides wealth management and trust services to individuals, businesses, and non-profit organizations; investment and fiduciary services, such as investment management, investment advisory, estate settlement, client bill paying, custody, financial planning, corporate trustee/trust administration, and power of attorney and guardian of the estate capacities; and safekeeping and other depository services, as well as securities brokerage and ATM services. It operates through 15 community offices located in Chester, Delaware, and Philadelphia counties, Pennsylvania. The company was founded in 1860 and is based in Downingtown, Pennsylvania.
Industrial & Cmrcl Bnk f China Company Profile
Industrial and Commercial Bank of China Limited provides various banking products and services primarily in China and internationally. It 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. This segment's products and services include corporate loans, trade financing, deposit-taking activities, corporate wealth management services, custody activities, various corporate intermediary services, etc. The Personal Banking segment provides personal loans and cards, deposits, personal wealth management, and personal intermediary services to individual customers. The Treasury Operations segment is involved in the money market transactions, investment securities, and foreign exchange transactions, as well as holding of derivative positions. The company also offers e-banking services, including Internet, telephone, and mobile banking services; and fund and asset management, trust, financial leasing, broker dealer, insurance, and other financial services. It operates approximately 16,394 domestic institutions and 426 overseas institutions. Industrial and Commercial Bank of China Limited was founded in 1984 and is headquartered in Beijing, the People's Republic of China.
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