Nordea Bank (OTCMKTS:NRDBY – Get Free Report) and Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
Dividends
Nordea Bank pays an annual dividend of $0.47 per share and has a dividend yield of 2.5%. Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.60 per share and has a dividend yield of 3.8%. Nordea Bank pays out 30.9% of its earnings in the form of a dividend. Industrial & Commercial Bank of China Ltd. pays out 21.9% 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 and Volatility
Nordea Bank has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Industrial & Commercial Bank of China Ltd. has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nordea Bank | 1 | 3 | 2 | 1 | 2.43 |
| Industrial & Commercial Bank of China Ltd. | 0 | 0 | 0 | 0 | 0.00 |
Earnings & Valuation
This table compares Nordea Bank and Industrial & Commercial Bank of China Ltd.”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nordea Bank | $26.50 billion | 2.47 | $5.47 billion | $1.52 | 12.53 |
| Industrial & Commercial Bank of China Ltd. | $219.33 billion | 1.27 | $50.89 billion | $2.74 | 5.71 |
Industrial & Commercial Bank of China Ltd. has higher revenue and earnings than Nordea Bank. Industrial & Commercial Bank of China Ltd. is trading at a lower price-to-earnings ratio than Nordea Bank, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
0.0% of Nordea Bank shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Nordea Bank and Industrial & Commercial Bank of China Ltd.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nordea Bank | 21.42% | 15.38% | 0.75% |
| Industrial & Commercial Bank of China Ltd. | 24.10% | 8.96% | 0.71% |
Summary
Nordea Bank beats Industrial & Commercial Bank of China Ltd. on 9 of the 15 factors compared between the two stocks.
About Nordea Bank
Nordea Bank Abp offers banking products and services in Sweden, Finland, Norway, Denmark, and internationally. It operates through Personal Banking, Business Banking, Large Corporates & Institutions, and Asset & Wealth Management segments. The Personal Banking segment provides various financial services to customers through mobile banking, over the phone, online meetings, and branch offices. The Business Banking segment offers payments, cash management, cards, working capital management, and cards and finance solutions to corporate and personal customers. The Large Corporates & Institutions segment provides financing, cash management and payment, investment banking, capital market products, and securities services to corporate and institutional customers. The Asset & Wealth Management segment offers investment, savings, and risk management solutions to high net worth individuals and institutional investors. It also offers account-based products, such as lending and deposit; project finance services, asset-based financing through leasing, hire purchase, and factoring, as well as sales to finance partners, such as dealers, vendors, and retailers; financial instruments or arrangement for financial instruments, including currencies, commodities, stocks, and bonds; and asset management, including investment funds, discretionary management, portfolio advice, equity trading, and pension accounts, as well as life insurance and pension products and services. Nordea Bank Abp was founded in 1820 and is headquartered in Helsinki, Finland.
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.
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