China CITIC Bank (OTCMKTS:CHCJY – Get Free Report) and ICICI Bank (NYSE:IBN – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Earnings and Valuation
This table compares China CITIC Bank and ICICI Bank”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China CITIC Bank | $47.42 billion | N/A | $9.54 billion | $3.27 | 5.76 |
| ICICI Bank | $22.68 billion | 4.93 | $6.02 billion | $1.58 | 19.79 |
Risk & Volatility
China CITIC Bank has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, ICICI Bank has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.
Profitability
This table compares China CITIC Bank and ICICI Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China CITIC Bank | 20.20% | 8.48% | 0.72% |
| ICICI Bank | 24.57% | 14.17% | 1.83% |
Dividends
China CITIC Bank pays an annual dividend of $0.81 per share and has a dividend yield of 4.3%. ICICI Bank pays an annual dividend of $0.21 per share and has a dividend yield of 0.7%. China CITIC Bank pays out 24.8% of its earnings in the form of a dividend. ICICI Bank pays out 13.3% 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.
Insider and Institutional Ownership
18.2% of ICICI Bank shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for China CITIC Bank and ICICI Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China CITIC Bank | 0 | 0 | 0 | 0 | 0.00 |
| ICICI Bank | 0 | 0 | 1 | 0 | 3.00 |
Summary
ICICI Bank beats China CITIC Bank on 8 of the 13 factors compared between the two stocks.
About China CITIC Bank
China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.
About ICICI Bank
ICICI Bank Limited provides various banking products and services in India and internationally. It operates through Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, and Others segments. The company offers savings, salary, pension, current, and other accounts; and time, fixed, recurring, and security deposits services. It also provides home, car, two-wheeler, personal, gold, and commercial business loans, as well as loans against securities and other loans; business loans, including working capital finance, term loans, collateral free loans, loans without financials, finance for importers and exporters, and overdraft facilities, as well as loans for new entities and card swipes; and credit, debit, prepaid, travel, forex, and corporate cards. In addition, the company offers pockets wallet; fixed income products; investment products, such as mutual funds, gold monetization schemes, initial public offerings, and other online investment services; and agri and rural business, farmer finance, tractor loans, and micro banking services, as well as other services to agri corporates. Further, it provides portfolio management, trade, foreign exchange, locker, private and NRI banking, and cash management services; family wealth and demat accounts; commercial and investment banking, capital market, custodial, and institutional banking services; health, personal accident, fire, and motor insurance, as well as distributes general and life insurance products; and Internet, mobile, and phone banking services. Additionally, the company offers securities investment, broking, trading, and underwriting services; and merchant banking, trusteeship, housing finance, pension fund management, asset management, investment advisory, points of presence, and private equity/venture capital fund management services. ICICI Bank Limited was founded in 1955 and is headquartered in Mumbai, India.
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