Industrial and Commercial Bank of China (OTCMKTS:IDCBY) and Westamerica Bancorporation (NASDAQ:WABC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.
This table compares Industrial and Commercial Bank of China and Westamerica Bancorporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Industrial and Commercial Bank of China||25.49%||11.22%||0.96%|
Industrial and Commercial Bank of China pays an annual dividend of $0.70 per share and has a dividend yield of 6.2%. Westamerica Bancorporation pays an annual dividend of $1.64 per share and has a dividend yield of 2.9%. Industrial and Commercial Bank of China pays out 28.1% of its earnings in the form of a dividend. Westamerica Bancorporation pays out 58.0% 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. Westamerica Bancorporation has increased its dividend for 1 consecutive years. Industrial and Commercial Bank of China is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Industrial and Commercial Bank of China and Westamerica Bancorporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Industrial and Commercial Bank of China||$179.59 billion||1.12||$45.77 billion||$2.49||4.55|
|Westamerica Bancorporation||$211.49 million||7.16||$80.41 million||$2.83||19.90|
Industrial and Commercial Bank of China has higher revenue and earnings than Westamerica Bancorporation. Industrial and Commercial Bank of China is trading at a lower price-to-earnings ratio than Westamerica Bancorporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Industrial and Commercial Bank of China has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Westamerica Bancorporation has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Industrial and Commercial Bank of China and Westamerica Bancorporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Industrial and Commercial Bank of China||1||0||0||0||1.00|
Westamerica Bancorporation has a consensus target price of $75.00, indicating a potential upside of 33.14%. Given Westamerica Bancorporation’s stronger consensus rating and higher possible upside, analysts clearly believe Westamerica Bancorporation is more favorable than Industrial and Commercial Bank of China.
Institutional and Insider Ownership
0.0% of Industrial and Commercial Bank of China shares are held by institutional investors. Comparatively, 75.0% of Westamerica Bancorporation shares are held by institutional investors. 4.2% of Westamerica Bancorporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Westamerica Bancorporation beats Industrial and Commercial Bank of China on 12 of the 17 factors compared between the two stocks.
Industrial and Commercial Bank of China Company Profile
Industrial and Commercial Bank of China Limited provides various banking products and services in China and internationally. It 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. This segment's products and services include corporate loans, trade financing, deposit-taking activities, corporate wealth management services, custody activities, various corporate intermediary services, etc. The Personal Banking segment provides personal loans and cards, deposits, personal wealth management, and personal intermediary services to individual customers. The Treasury Operations segment is involved in the money market transactions, investment securities, and foreign exchange transactions, as well as holding of derivative positions. The company also offers e-banking services, including Internet, telephone, and mobile banking services; and investment banking, fund and asset management, trust, financial leasing, broker dealer, insurance, and other financial services. It operates approximately 16,197 domestic institutions and 426 overseas institutions. Industrial and Commercial Bank of China Limited was founded in 1984 and is headquartered in Beijing, the People's Republic of China.
Westamerica Bancorporation Company Profile
Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as other loans primarily consisting of indirect automobile loans. Westamerica Bancorporation operates through 79 branch offices in 21 counties in Northern and Central California. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. Westamerica Bancorporation was founded in 1972 and is headquartered in San Rafael, California.
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