ING Group (NYSE:ING) and Chiba Bank (OTCMKTS:CHBAY) Head-To-Head Review

ING Group (NYSE:ING) and Chiba Bank (OTCMKTS:CHBAY) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Valuation and Earnings

This table compares ING Group and Chiba Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ING Group	$24.47 billion	3.40	$5.77 billion	$2.22	12.89
Chiba Bank	$2.38 billion	3.73	$490.11 million	$3.83	14.36

ING Group has higher revenue and earnings than Chiba Bank. ING Group is trading at a lower price-to-earnings ratio than Chiba Bank, indicating that it is currently the more affordable of the two stocks.

Dividends

ING Group pays an annual dividend of $0.69 per share and has a dividend yield of 2.4%. Chiba Bank pays an annual dividend of $1.09 per share and has a dividend yield of 2.0%. ING Group pays out 31.1% of its earnings in the form of a dividend. Chiba Bank pays out 28.5% 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.

Analyst Recommendations

This is a summary of current ratings and target prices for ING Group and Chiba Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ING Group	0	0	5	1	3.17
Chiba Bank	0	0	0	0	0.00

Volatility and Risk

ING Group has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Chiba Bank has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500.

Insider and Institutional Ownership

4.5% of ING Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares ING Group and Chiba Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ING Group	26.94%	11.57%	0.57%
Chiba Bank	20.20%	7.03%	0.38%

Summary

ING Group beats Chiba Bank on 11 of the 15 factors compared between the two stocks.

About ING Group

ING Groep N.V. provides various banking products and services in the Netherlands, Belgium, Germany, rest of Europe, and internationally. It operates through five segments: Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking. The company accepts current and savings accounts. It also offers business lending products; SME loans; consumer lending products, such as residential mortgage loans and other consumer lending loans; and mortgages. In addition, the company provides working capital solutions; debt and equity market solutions; various loans; payments; and cash management, trade and corporate finance, and treasury services, as well as savings, investment, insurance, and digital banking services. It serves individual customers, corporate clients, and financial institutions. ING Groep N.V. was founded in 1762 and is headquartered in Amsterdam, the Netherlands.

About Chiba Bank

The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.