Commerzbank (OTCMKTS:CRZBY) vs. ICICI Bank (NYSE:IBN) Head to Head Review

ICICI Bank (NYSE:IBN) and Commerzbank (OTCMKTS:CRZBY) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Institutional and Insider Ownership

18.2% of ICICI Bank shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares ICICI Bank and Commerzbank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICICI Bank	$2,134.65 billion	0.05	$6.02 billion	$1.62	18.53
Commerzbank	$25.96 billion	1.93	$2.90 billion	$2.27	18.67

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

Risk and Volatility

ICICI Bank has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Commerzbank has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Profitability

This table compares ICICI Bank and Commerzbank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ICICI Bank	24.91%	14.91%	1.89%
Commerzbank	11.03%	7.29%	0.45%

Analyst Ratings

This is a summary of current ratings and price targets for ICICI Bank and Commerzbank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICICI Bank	0	1	0	0	2.00
Commerzbank	0	4	2	0	2.33

Dividends

ICICI Bank pays an annual dividend of $0.21 per share and has a dividend yield of 0.7%. Commerzbank pays an annual dividend of $0.52 per share and has a dividend yield of 1.2%. ICICI Bank pays out 13.0% of its earnings in the form of a dividend. Commerzbank pays out 22.9% 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.

Summary

ICICI Bank beats Commerzbank on 8 of the 14 factors compared between the two stocks.

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.

About Commerzbank

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.