Head-To-Head Contrast: Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY) and Credit Agricole (OTCMKTS:CRARY)

Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY) and Credit Agricole (OTCMKTS:CRARY) 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, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Volatility and Risk

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. Comparatively, Credit Agricole has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares Industrial & Commercial Bank of China Ltd. and Credit Agricole’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%
Credit Agricole	27.03%	37.56%	1.35%

Analyst Recommendations

This is a summary of recent ratings and target prices for Industrial & Commercial Bank of China Ltd. and Credit Agricole, as provided 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
Credit Agricole	0	2	0	0	2.00

Valuation and Earnings

This table compares Industrial & Commercial Bank of China Ltd. and Credit Agricole”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Industrial & Commercial Bank of China Ltd.	$219.33 billion	1.31	$50.89 billion	$2.74	5.90
Credit Agricole	$29.42 billion	2.09	$7.67 billion	$1.30	7.81

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

Insider and Institutional Ownership

0.6% of Credit Agricole shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.59 per share and has a dividend yield of 3.7%. Credit Agricole pays an annual dividend of $0.39 per share and has a dividend yield of 3.8%. Industrial & Commercial Bank of China Ltd. pays out 21.5% of its earnings in the form of a dividend. Credit Agricole pays out 30.0% 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.

Summary

Credit Agricole beats Industrial & Commercial Bank of China Ltd. on 9 of the 13 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 Credit Agricole

Crédit Agricole S.A. provides retail, corporate, insurance, and investment banking products and services in France and internationally. It operates through French Retail Banking Regional Banks; French Retail Banking – LCL; International Retail Banking; Asset Gathering; Large Customers; and Specialised Financial Services segments. The company offers banking products and services, finance, savings, wealth management, payment, and cash flow management services; consumer finance products; savings/retirement, death and disability/creditor/group, and property and casualty insurance products; investment solutions; and banking and specialized financial services. It also provides investment banking, structured finance, international trade finance, commercial banking, capital market, and syndication services; financing solutions for property and equipment investment and renewal requirements; trade receivable financing and management solutions for corporates; asset servicing solutions for investment products, as well as various asset classes, such as execution, clearing, forex, security lending and borrowing, custody, depositary bank, fund administration, middle-office outsourcing solutions, and fund distribution support and issuer services; and online banking services. The company serves retail customers, corporates, banks and financial institutions, government agencies, and local authorities. Crédit Agricole S.A. was founded in 1894 and is headquartered in Montrouge, France. Crédit Agricole S.A. operates as a subsidiary of SAS Rue La Boetie.