Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) and Banco Latinoamericano de Comercio Exterior (NYSE:BLX – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Profitability
This table compares Industrial & Commercial Bank of China Ltd. and Banco Latinoamericano de Comercio Exterior’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Industrial & Commercial Bank of China Ltd. | 24.78% | 8.95% | 0.71% |
| Banco Latinoamericano de Comercio Exterior | 27.77% | 14.36% | 1.79% |
Earnings & Valuation
This table compares Industrial & Commercial Bank of China Ltd. and Banco Latinoamericano de Comercio Exterior”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Industrial & Commercial Bank of China Ltd. | $208.16 billion | 1.47 | $51.27 billion | $2.84 | 6.04 |
| Banco Latinoamericano de Comercio Exterior | $836.85 million | 2.52 | $226.88 million | $6.02 | 9.40 |
Industrial & Commercial Bank of China Ltd. has higher revenue and earnings than Banco Latinoamericano de Comercio Exterior. Industrial & Commercial Bank of China Ltd. is trading at a lower price-to-earnings ratio than Banco Latinoamericano de Comercio Exterior, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
19.5% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. 0.2% of Banco Latinoamericano de Comercio Exterior 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.
Analyst Ratings
This is a summary of current ratings and price targets for Industrial & Commercial Bank of China Ltd. and Banco Latinoamericano de Comercio Exterior, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Industrial & Commercial Bank of China Ltd. | 0 | 1 | 0 | 0 | 2.00 |
| Banco Latinoamericano de Comercio Exterior | 0 | 0 | 0 | 1 | 4.00 |
Risk and Volatility
Industrial & Commercial Bank of China Ltd. has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, Banco Latinoamericano de Comercio Exterior has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
Dividends
Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.75 per share and has a dividend yield of 4.4%. Banco Latinoamericano de Comercio Exterior pays an annual dividend of $2.75 per share and has a dividend yield of 4.9%. Industrial & Commercial Bank of China Ltd. pays out 26.4% of its earnings in the form of a dividend. Banco Latinoamericano de Comercio Exterior pays out 45.7% 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. Banco Latinoamericano de Comercio Exterior has increased its dividend for 2 consecutive years. Banco Latinoamericano de Comercio Exterior is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Banco Latinoamericano de Comercio Exterior 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 Banco Latinoamericano de Comercio Exterior
Banco Latinoamericano de Comercio Exterior, S. A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates in two segments, Commercial and Treasury. It offers bilateral loans; structured loans including syndicated and clubbed, such as acquisition and pre-export financing, A/B loan financing, bridge loans, and liability management; and project financing. The company also provides letter of credit comprising import and export letters of credit, and credit discounting and financing, as well as usance payable at sight; stand-by services; bank guarantees, including first demand and local guarantees; import and export documentary collection; irrevocable reimbursement undertaking; and canal tolls. In addition, it offers liquidity and investment solutions, such as time deposits, DDA accounts, Yankee certificate of deposits, and EMTN private placement services, as well as supply chain finance services. The company primarily serves financial institutions, corporations, and sovereigns and state-owned entities. Banco Latinoamericano de Comercio Exterior, S. A.was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S. A. in June 2009. The company was founded in 1975 and is headquartered in Panama City, the Republic of Panama.
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