KBC Group (OTCMKTS:KBCSY – 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 investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.
Dividends
KBC Group pays an annual dividend of $2.34 per share and has a dividend yield of 3.9%. Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.70 per share and has a dividend yield of 4.5%. KBC Group pays out 49.2% of its earnings in the form of a dividend. Industrial & Commercial Bank of China Ltd. pays out 26.0% 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.
Valuation & Earnings
This table compares KBC Group and Industrial & Commercial Bank of China Ltd.”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KBC Group | $27.10 billion | 1.86 | $3.69 billion | $4.76 | 12.67 |
| Industrial & Commercial Bank of China Ltd. | $219.33 billion | 1.26 | $50.89 billion | $2.69 | 5.77 |
Industrial & Commercial Bank of China Ltd. has higher revenue and earnings than KBC Group. Industrial & Commercial Bank of China Ltd. is trading at a lower price-to-earnings ratio than KBC Group, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
KBC Group has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Industrial & Commercial Bank of China Ltd. has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.
Profitability
This table compares KBC Group 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 | |
| KBC Group | 15.04% | 14.85% | 0.98% |
| Industrial & Commercial Bank of China Ltd. | 23.38% | 9.08% | 0.73% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for KBC Group and Industrial & Commercial Bank of China Ltd., as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KBC Group | 0 | 3 | 1 | 0 | 2.25 |
| Industrial & Commercial Bank of China Ltd. | 0 | 0 | 0 | 0 | 0.00 |
Summary
KBC Group beats Industrial & Commercial Bank of China Ltd. on 8 of the 13 factors compared between the two stocks.
About KBC Group
KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. The company offers demand deposits and savings accounts; home and mortgage loans; consumer finance and SME funding services; credit, investment fund and asset management, and life and non-life insurance; and cash management, payments, trade finance, lease, money market, capital market products, and stockbroking services. It also provides digital and mobile banking services. The company was formerly known as KBC Bank and Insurance Holding Company NV and changed its name to KBC Group NV in March 2005. KBC Group NV was incorporated in 1935 and is headquartered in Brussels, Belgium.
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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