Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) and Mitsubishi UFJ Financial Group (NYSE:MUFG – Get Free Report) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Profitability
This table compares Industrial & Commercial Bank of China Ltd. and Mitsubishi UFJ Financial Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Industrial & Commercial Bank of China Ltd. | 24.10% | 8.96% | 0.71% |
| Mitsubishi UFJ Financial Group | 13.98% | 9.39% | 0.49% |
Risk and Volatility
Industrial & Commercial Bank of China Ltd. has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, Mitsubishi UFJ Financial Group has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Industrial & Commercial Bank of China Ltd. | 0 | 0 | 0 | 0 | 0.00 |
| Mitsubishi UFJ Financial Group | 0 | 2 | 0 | 0 | 2.00 |
Earnings & Valuation
This table compares Industrial & Commercial Bank of China Ltd. and Mitsubishi UFJ Financial Group”s 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 | 1.29 | $50.89 billion | $2.74 | 5.80 |
| Mitsubishi UFJ Financial Group | $89.51 billion | 2.18 | $8.36 billion | $1.12 | 14.68 |
Industrial & Commercial Bank of China Ltd. has higher revenue and earnings than Mitsubishi UFJ Financial Group. Industrial & Commercial Bank of China Ltd. is trading at a lower price-to-earnings ratio than Mitsubishi UFJ Financial Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
13.6% of Mitsubishi UFJ Financial Group shares are held by institutional investors. 0.0% of Mitsubishi UFJ Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Dividends
Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.60 per share and has a dividend yield of 3.8%. Mitsubishi UFJ Financial Group pays an annual dividend of $0.38 per share and has a dividend yield of 2.3%. Industrial & Commercial Bank of China Ltd. pays out 21.9% of its earnings in the form of a dividend. Mitsubishi UFJ Financial Group pays out 33.9% 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.
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 Mitsubishi UFJ Financial Group
Mitsubishi UFJ Financial Group, Inc. operates as the bank holding company, that engages in a range of financial businesses in Japan, the United States, Europe, Asia/Oceania, and internationally. It operates through seven segments: Digital Service, Retail & Commercial Banking, Japanese Corporate & Investment Banking, Global Commercial Banking, Asset Management & Investor Services, Global Corporate & Investment Banking, and Global Markets. The company offers commercial banking, trust banking, and securities products and services to retail, and small and medium-sized enterprise customers. It also provides mergers and acquisition, debt and equity issuance, financial advice, and real estate-related services; digital-based financial services; credit cards; and trust banking and securities products and services, as well as engages in the lending, fund settlement, and foreign exchange businesses. In addition, the company offers corporate banking services, such as project export credit agency finance, and financing through asset-backed commercial paper; investment and transaction banking services for corporations, financial institutions, sovereign and multinational organizations, and institutional investors; and asset management and investor services, including pension fund management and administration, pension structure advisory, beneficiary payment, and investment trust services for retail customers. Further, it provides loans, deposits, fund transfers, hedging, and investments services for retail, small and medium-sized enterprise, as well as corporate customers; financing for automotive and consumer goods; sells and trades in fixed income instruments, currencies, equities, and equities; offers investment products comprising mutual funds, structured bonds, and notes; originates and distributes of financial products; and provides insurance and treasury services. The company was founded in 1880 and is headquartered in Tokyo, Japan.
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