Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) and Commerzbank (OTCMKTS:CRZBY – Get Free Report) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.
Dividends
Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.60 per share and has a dividend yield of 3.8%. Commerzbank pays an annual dividend of $0.52 per share and has a dividend yield of 1.3%. Industrial & Commercial Bank of China Ltd. pays out 21.9% of its earnings in the form of a dividend. Commerzbank pays out 22.9% 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. Industrial & Commercial Bank of China Ltd. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Industrial & Commercial Bank of China Ltd. has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Commerzbank has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Industrial & Commercial Bank of China Ltd. | 0 | 0 | 0 | 0 | 0.00 |
| Commerzbank | 0 | 4 | 2 | 0 | 2.33 |
Valuation & Earnings
This table compares Industrial & Commercial Bank of China Ltd. and Commerzbank”s top-line 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. | $219.33 billion | 1.28 | $50.89 billion | $2.74 | 5.74 |
| Commerzbank | $25.96 billion | 1.86 | $2.90 billion | $2.27 | 17.96 |
Industrial & Commercial Bank of China Ltd. has higher revenue and earnings than Commerzbank. Industrial & Commercial Bank of China Ltd. is trading at a lower price-to-earnings ratio than Commerzbank, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Industrial & Commercial Bank of China Ltd. and Commerzbank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Industrial & Commercial Bank of China Ltd. | 24.10% | 8.96% | 0.71% |
| Commerzbank | 11.03% | 7.29% | 0.45% |
Summary
Industrial & Commercial Bank of China Ltd. beats Commerzbank on 8 of the 13 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 Commerzbank
Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.
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