Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) and China Construction Bank (OTCMKTS:CICHY – Get Free Report) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.
Earnings & Valuation
This table compares Industrial & Commercial Bank of China Ltd. and China Construction Bank”s top-line 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. | $219.33 billion | 1.31 | $50.89 billion | $2.74 | 5.90 |
| China Construction Bank | $188.88 billion | 1.38 | $46.68 billion | $3.60 | 5.55 |
Profitability
This table compares Industrial & Commercial Bank of China Ltd. and China Construction Bank’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% |
| China Construction Bank | 25.63% | 9.81% | 0.78% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Industrial & Commercial Bank of China Ltd. and China Construction Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Industrial & Commercial Bank of China Ltd. | 0 | 0 | 0 | 0 | 0.00 |
| China Construction Bank | 0 | 1 | 0 | 0 | 2.00 |
Dividends
Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.60 per share and has a dividend yield of 3.7%. China Construction Bank pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. Industrial & Commercial Bank of China Ltd. pays out 21.9% of its earnings in the form of a dividend. China Construction Bank pays out 22.2% 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 and Risk
Industrial & Commercial Bank of China Ltd. has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, China Construction Bank has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.
Summary
China Construction Bank beats Industrial & Commercial Bank of China Ltd. on 7 of the 12 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 China Construction Bank
China Construction Bank Corporation provides various banking and related financial services to individuals and corporate customers in the People's Republic of China and internationally. It operates through Corporate Finance Business, Personal Finance Business, Treasury and Asset Management Business, and Others segments. The company accepts various deposits, such as foreign currency, all in one accounts, RMB, corporate term and notification, and corporate demand deposits, as well corporate deposits by agreement. Its loan products include personal business, car, and housing loans; and SME, traditional credit, commercial draft, buyer credit, and RMB credit line loans. The company also offers credit cards; physical gold for personal investment and personal gold accounts; foreign exchange services; certificate treasury and savings bonds, securities deposit accounts, and securities services, as well as bank-securities transfer and book-entry treasury bond over the counter transaction services; and wealth management products. In addition, it provides collection, salaries payment, third-party collection and payment, insurance agency, and remittance services; international settlement and financing, and FI services; securities and fund settlement services; guarantee-based, consulting and advising, and factoring services; fund custody services; and e-banking services. Further, the company offers institutional services comprising services for government agencies, social security, banks cooperation, bank-securities cooperation, bank-insurance cooperation, and services for non-banking financial institutions. China Construction Bank Corporation was founded in 1954 and is headquartered in Beijing, the People's Republic of China.
Receive News & Ratings for Industrial & Commercial Bank of China Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Industrial & Commercial Bank of China Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.
