Comparing SmartFinancial (NASDAQ:SMBK) & Industrial and Commercial Bank of China (OTCMKTS:IDCBY)

SmartFinancial (NASDAQ:SMBK) and Industrial and Commercial Bank of China (OTCMKTS:IDCBY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Dividends

SmartFinancial pays an annual dividend of $0.32 per share and has a dividend yield of 0.9%. Industrial and Commercial Bank of China pays an annual dividend of $0.61 per share and has a dividend yield of 4.5%. SmartFinancial pays out 15.0% of its earnings in the form of a dividend. Industrial and Commercial Bank of China pays out 22.3% 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.

Valuation & Earnings

This table compares SmartFinancial and Industrial and Commercial Bank of China”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartFinancial	$285.27 million	2.06	$36.14 million	$2.14	16.23
Industrial and Commercial Bank of China	$218.31 billion	1.11	$51.43 billion	$2.73	5.00

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

Analyst Ratings

This is a summary of recent recommendations for SmartFinancial and Industrial and Commercial Bank of China, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartFinancial	0	4	0	1	2.40
Industrial and Commercial Bank of China	0	0	0	0	0.00

SmartFinancial presently has a consensus target price of $30.70, suggesting a potential downside of 11.62%. Given SmartFinancial’s stronger consensus rating and higher probable upside, equities analysts plainly believe SmartFinancial is more favorable than Industrial and Commercial Bank of China.

Institutional & Insider Ownership

58.8% of SmartFinancial shares are owned by institutional investors. 7.7% of SmartFinancial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares SmartFinancial and Industrial and Commercial Bank of China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SmartFinancial	12.67%	7.33%	0.71%
Industrial and Commercial Bank of China	23.22%	9.37%	0.77%

Volatility & Risk

SmartFinancial has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Industrial and Commercial Bank of China has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Summary

SmartFinancial beats Industrial and Commercial Bank of China on 9 of the 16 factors compared between the two stocks.

About SmartFinancial

SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, and Florida. It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, Leases, and Consumer and Other segments. The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit. It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans and leases; commercial business and mortgage loans; and direct consumer installment, educational, agriculture, and other revolving credit loans; equipment financing, heavy equipment, semis, and trailers loans and leases to small and mid-size companies; letters of credit; and overdraft facilities. In addition, the company offers wealth management, insurance, mortgage origination, and internet and mobile banking services. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.

About Industrial and Commercial Bank of China

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.