Head-To-Head Contrast: First Capital (NASDAQ:FCAP) versus Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY)

Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY) and First Capital (NASDAQ:FCAP) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Profitability

This table compares Industrial & Commercial Bank of China Ltd. and First Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Industrial & Commercial Bank of China Ltd.	24.67%	8.75%	0.69%
First Capital	27.14%	13.67%	1.49%

Earnings and Valuation

This table compares Industrial & Commercial Bank of China Ltd. and First Capital”s gross 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.	$208.16 billion	1.74	$51.27 billion	$2.88	7.08
First Capital	$56.05 million	3.74	$16.37 million	$5.72	10.94

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

Volatility & Risk

Industrial & Commercial Bank of China Ltd. has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500. Comparatively, First Capital has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Industrial & Commercial Bank of China Ltd. and First Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industrial & Commercial Bank of China Ltd.	0	1	0	0	2.00
First Capital	0	0	2	0	3.00

Insider & Institutional Ownership

11.6% of First Capital shares are owned by institutional investors. 4.1% of First Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers 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 $0.67 per share and has a dividend yield of 3.3%. First Capital pays an annual dividend of $1.28 per share and has a dividend yield of 2.0%. Industrial & Commercial Bank of China Ltd. pays out 23.3% of its earnings in the form of a dividend. First Capital pays out 22.4% 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. First Capital has raised its dividend for 2 consecutive years.

Summary

First Capital beats Industrial & Commercial Bank of China Ltd. on 13 of the 16 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 First Capital

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest-bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides residential mortgage loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, credit cards and other personal loans, and loans secured by savings deposits, as well as unsecured consumer loans. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.