Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) and Intesa Sanpaolo (OTCMKTS:ISNPY – Get Free Report) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Industrial & Commercial Bank of China Ltd. and Intesa Sanpaolo’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% |
| Intesa Sanpaolo | 25.19% | 14.10% | 1.02% |
Valuation and Earnings
This table compares Industrial & Commercial Bank of China Ltd. and Intesa Sanpaolo”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Industrial & Commercial Bank of China Ltd. | $208.16 billion | 1.40 | $51.27 billion | $2.84 | 5.77 |
| Intesa Sanpaolo | $43.96 billion | 2.80 | $10.54 billion | $3.72 | 11.35 |
Industrial & Commercial Bank of China Ltd. has higher revenue and earnings than Intesa Sanpaolo. Industrial & Commercial Bank of China Ltd. is trading at a lower price-to-earnings ratio than Intesa Sanpaolo, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
1.2% of Intesa Sanpaolo shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent recommendations and price targets for Industrial & Commercial Bank of China Ltd. and Intesa Sanpaolo, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Industrial & Commercial Bank of China Ltd. | 0 | 1 | 0 | 0 | 2.00 |
| Intesa Sanpaolo | 0 | 3 | 4 | 1 | 2.75 |
Risk & Volatility
Industrial & Commercial Bank of China Ltd. has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Intesa Sanpaolo has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
Dividends
Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.75 per share and has a dividend yield of 4.6%. Intesa Sanpaolo pays an annual dividend of $1.91 per share and has a dividend yield of 4.5%. Industrial & Commercial Bank of China Ltd. pays out 26.4% of its earnings in the form of a dividend. Intesa Sanpaolo pays out 51.3% 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.
Summary
Intesa Sanpaolo beats Industrial & Commercial Bank of China Ltd. on 11 of the 15 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 Intesa Sanpaolo
Intesa Sanpaolo S.p.A. provides various financial products and services primarily in Italy. It operates through six segments: Banca dei Territori, IMI Corporate & Investment Banking, International Subsidiary Banks, Asset Management, Private Banking, and Insurance. The company offers lending and deposit products; private and commercial banking, corporate and transaction banking, structured finance, investment banking, public finance, and capital markets; industrial credit, leasing, and factoring; asset management; life and non-life insurance and pension products; asset and wealth management; private investments; and bancassurance products. The company serves individuals, small and medium-sized businesses, non-profit customers, corporates and financial institutions, public administration, private clients and high net worth individuals, institutional clientele, and other customers. Intesa Sanpaolo S.p.A. was founded in 1998 and is headquartered in Turin, Italy.
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