Grupo Financiero Galicia (NASDAQ:GGAL – Get Free Report) and Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
Dividends
Grupo Financiero Galicia pays an annual dividend of $1.71 per share and has a dividend yield of 3.0%. Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.59 per share and has a dividend yield of 3.8%. Grupo Financiero Galicia pays out 86.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Industrial & Commercial Bank of China Ltd. pays out 21.5% of its earnings in the form of a dividend. Industrial & Commercial Bank of China Ltd. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Grupo Financiero Galicia has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Industrial & Commercial Bank of China Ltd. has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grupo Financiero Galicia | 1 | 3 | 4 | 1 | 2.56 |
| Industrial & Commercial Bank of China Ltd. | 0 | 0 | 0 | 0 | 0.00 |
Grupo Financiero Galicia presently has a consensus price target of $66.25, indicating a potential upside of 17.63%. Given Grupo Financiero Galicia’s stronger consensus rating and higher possible upside, analysts clearly believe Grupo Financiero Galicia is more favorable than Industrial & Commercial Bank of China Ltd..
Profitability
This table compares Grupo Financiero Galicia 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 | |
| Grupo Financiero Galicia | 7.13% | 18.96% | 3.47% |
| Industrial & Commercial Bank of China Ltd. | 24.10% | 8.96% | 0.71% |
Valuation & Earnings
This table compares Grupo Financiero Galicia and Industrial & Commercial Bank of China Ltd.”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grupo Financiero Galicia | $10.79 billion | 0.77 | $1.79 billion | $1.98 | 28.44 |
| Industrial & Commercial Bank of China Ltd. | $219.33 billion | 1.27 | $50.89 billion | $2.74 | 5.72 |
Industrial & Commercial Bank of China Ltd. has higher revenue and earnings than Grupo Financiero Galicia. Industrial & Commercial Bank of China Ltd. is trading at a lower price-to-earnings ratio than Grupo Financiero Galicia, indicating that it is currently the more affordable of the two stocks.
Summary
Grupo Financiero Galicia beats Industrial & Commercial Bank of China Ltd. on 8 of the 15 factors compared between the two stocks.
About Grupo Financiero Galicia
Grupo Financiero Galicia S.A., a financial service holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, NaranjaX, Insurance, and Other Businesses segments. It also offers personal loans; express and mortgage loans; pledge and credit card loans; credit and debit cards; and online banking services, as well as savings, deposits, and checking accounts related services. In addition, the company offers financing products; consumer finance and digital banking services; electronic check; global custody services; Fima funds; financial and stock market services to individuals, companies, and financial institutions; foreign trade services; and capital market and investment banking products that include debt securities, short-term securities, and financial trusts. Further, it provides robbery, personal accident, life collective, home, life, integral, pet, surety, and technical insurance products. Additionally, the company offers private banking services to high net worth individuals; and operates digital investment platform. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.
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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