Reviewing Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY) and Banco Santander Brasil (NYSE:BSBR)

Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY) and Banco Santander Brasil (NYSE:BSBR) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Earnings & Valuation

This table compares Industrial & Commercial Bank of China Ltd. and Banco Santander Brasil”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	1.28	$50.89 billion	$2.69	5.85
Banco Santander Brasil	$25.44 billion	0.71	$2.48 billion	$0.81	5.98

Industrial & Commercial Bank of China Ltd. has higher revenue and earnings than Banco Santander Brasil. Industrial & Commercial Bank of China Ltd. is trading at a lower price-to-earnings ratio than Banco Santander Brasil, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Industrial & Commercial Bank of China Ltd. has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, Banco Santander Brasil has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Insider & Institutional Ownership

14.5% of Banco Santander Brasil shares are owned by institutional investors. 0.1% of Banco Santander Brasil shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Industrial & Commercial Bank of China Ltd. and Banco Santander Brasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Industrial & Commercial Bank of China Ltd.	23.38%	9.08%	0.73%
Banco Santander Brasil	8.42%	11.08%	1.08%

Analyst Recommendations

This is a summary of recent ratings for Industrial & Commercial Bank of China Ltd. and Banco Santander Brasil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industrial & Commercial Bank of China Ltd.	0	0	0	0	0.00
Banco Santander Brasil	0	2	2	0	2.50

Banco Santander Brasil has a consensus price target of $5.35, indicating a potential upside of 10.54%. Given Banco Santander Brasil’s stronger consensus rating and higher possible upside, analysts plainly believe Banco Santander Brasil is more favorable than Industrial & Commercial Bank of China Ltd..

Dividends

Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.70 per share and has a dividend yield of 4.4%. Banco Santander Brasil pays an annual dividend of $0.18 per share and has a dividend yield of 3.7%. Industrial & Commercial Bank of China Ltd. pays out 26.0% of its earnings in the form of a dividend. Banco Santander Brasil 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.

Summary

Banco Santander Brasil beats Industrial & Commercial Bank of China Ltd. on 10 of the 16 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 Banco Santander Brasil

Banco Santander (Brasil) S.A., together with its subsidiaries, provides various banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. The company operates through Commercial Banking and Global Wholesale Banking segments. It offers local loans, commercial financing options, development bank funds, and cash management services; export and import financing, guarantees, structuring of asset services. In addition, the company provides financing and advisory services for infrastructure projects and capital markets instruments, as well as offers equity transactions and mergers and acquisitions services. Further, it offers foreign exchange products, derivatives, and investments to institutional investors, corporate clients, and individuals. Additionally, the company provides research services, as well as offers brokerage services for corporate, institutional, and individual investors. Furthermore, it provides deposits and other bank funding instruments, and debit and credit cards. The company provides financial services and products to its customers through multichannel distribution network comprising branches, mini-branches, ATMs, call centers, Internet banking, and mobile banking. Banco Santander (Brasil) S.A. was incorporated in 1985 and is headquartered in São Paulo, Brazil. The company operates as a subsidiary of Banco Santander, S.A.