Northeast Bancorp (NASDAQ:NBN – Get Free Report) and Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.
Valuation & Earnings
This table compares Northeast Bancorp and Industrial & Commercial Bank of China Ltd.”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Northeast Bancorp | $222.55 million | 4.58 | $107.48 million | $12.72 | 9.77 |
| Industrial & Commercial Bank of China Ltd. | $208.16 billion | 1.67 | $51.27 billion | $2.88 | 6.77 |
Profitability
This table compares Northeast Bancorp 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 | |
| Northeast Bancorp | 27.91% | 19.35% | 2.22% |
| Industrial & Commercial Bank of China Ltd. | 24.67% | 8.75% | 0.69% |
Risk and Volatility
Northeast Bancorp has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Industrial & Commercial Bank of China Ltd. has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Northeast Bancorp and Industrial & Commercial Bank of China Ltd., as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Northeast Bancorp | 0 | 1 | 2 | 0 | 2.67 |
| Industrial & Commercial Bank of China Ltd. | 0 | 0 | 0 | 1 | 4.00 |
Northeast Bancorp presently has a consensus target price of $143.50, indicating a potential upside of 15.43%. Given Northeast Bancorp’s higher probable upside, research analysts clearly believe Northeast Bancorp is more favorable than Industrial & Commercial Bank of China Ltd..
Dividends
Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.67 per share and has a dividend yield of 3.4%. Northeast Bancorp pays out 0.3% of its earnings in the form of a dividend. Industrial & Commercial Bank of China Ltd. pays out 23.3% 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.
Summary
Northeast Bancorp beats Industrial & Commercial Bank of China Ltd. on 10 of the 15 factors compared between the two stocks.
About Northeast Bancorp
Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.
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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