Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) and Itau Unibanco (NYSE:ITUB – Get Free Report) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Dividends
Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.70 per share and has a dividend yield of 4.6%. Itau Unibanco pays an annual dividend of $0.03 per share and has a dividend yield of 0.4%. Industrial & Commercial Bank of China Ltd. pays out 26.0% of its earnings in the form of a dividend. Itau Unibanco pays out 4.2% 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.
Profitability
This table compares Industrial & Commercial Bank of China Ltd. and Itau Unibanco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Industrial & Commercial Bank of China Ltd. | 23.66% | 9.11% | 0.73% |
| Itau Unibanco | 14.05% | 19.48% | 1.48% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Industrial & Commercial Bank of China Ltd. | $219.33 billion | 1.25 | $50.89 billion | $2.69 | 5.71 |
| Itau Unibanco | $62.19 billion | 1.21 | $7.62 billion | $0.71 | 9.85 |
Industrial & Commercial Bank of China Ltd. has higher revenue and earnings than Itau Unibanco. Industrial & Commercial Bank of China Ltd. is trading at a lower price-to-earnings ratio than Itau Unibanco, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for Industrial & Commercial Bank of China Ltd. and Itau Unibanco, 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 |
| Itau Unibanco | 0 | 1 | 2 | 1 | 3.00 |
Itau Unibanco has a consensus target price of $6.27, indicating a potential downside of 10.26%. Given Itau Unibanco’s stronger consensus rating and higher probable upside, analysts clearly believe Itau Unibanco is more favorable than Industrial & Commercial Bank of China Ltd..
Risk and Volatility
Industrial & Commercial Bank of China Ltd. has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Itau Unibanco has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
Summary
Itau Unibanco beats Industrial & Commercial Bank of China Ltd. on 9 of the 15 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 Itau Unibanco
Itaú Unibanco Holding S.A. offers a range of financial products and services to individuals and corporate customers in Brazil and internationally. The company operates through three segments: Retail Banking, Wholesale Banking, and Activities with the Market + Corporation. It offers current account; loans; credit and debit cards; investment and commercial banking services; real estate lending services; financing and investment services; economic, financial and brokerage advisory; and leasing and foreign exchange services. The company also provides property and casualty insurance products covering loss, damage, or liabilities for assets or persons, as well as life insurance products covering death and personal accident. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and small companies, as well as middle-market companies and high net worth clients. The company was formerly known as Itaú Unibanco Banco Múltiplo S.A. and changed its name to Itaú Unibanco Holding S.A. in April 2009. The company was incorporated in 1924 and is headquartered in São Paulo, Brazil. Itaú Unibanco Holding S.A. operates as a subsidiary of IUPAR – Itaú Unibanco Participações S.A.
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