CNB Financial (NASDAQ:CCNE – Get Free Report) and Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.
Earnings and Valuation
This table compares CNB Financial and Industrial & Commercial Bank of China Ltd.”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CNB Financial | $329.28 million | 3.04 | $66.13 million | $3.11 | 10.86 |
| Industrial & Commercial Bank of China Ltd. | $208.16 billion | 1.66 | $51.27 billion | $2.88 | 6.73 |
Volatility & Risk
CNB Financial has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Industrial & Commercial Bank of China Ltd. has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.
Dividends
CNB Financial pays an annual dividend of $0.76 per share and has a dividend yield of 2.2%. Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.67 per share and has a dividend yield of 3.5%. CNB Financial pays out 24.4% of its earnings in the form of a dividend. Industrial & Commercial Bank of China Ltd. pays out 23.3% 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. CNB Financial has raised its dividend for 1 consecutive years. Industrial & Commercial Bank of China Ltd. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
52.3% of CNB Financial shares are held by institutional investors. 2.9% of CNB Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares CNB Financial and Industrial & Commercial Bank of China Ltd.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CNB Financial | 19.37% | 12.85% | 1.26% |
| Industrial & Commercial Bank of China Ltd. | 24.67% | 8.75% | 0.69% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for CNB Financial and Industrial & Commercial Bank of China Ltd., as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CNB Financial | 0 | 2 | 4 | 1 | 2.86 |
| Industrial & Commercial Bank of China Ltd. | 0 | 0 | 0 | 1 | 4.00 |
CNB Financial presently has a consensus price target of $37.00, suggesting a potential upside of 9.50%. Given CNB Financial’s higher probable upside, research analysts plainly believe CNB Financial is more favorable than Industrial & Commercial Bank of China Ltd..
Summary
CNB Financial beats Industrial & Commercial Bank of China Ltd. on 11 of the 17 factors compared between the two stocks.
About CNB Financial
CNB Financial Corporation operates as the bank holding company for CNB Bank that provides a range of banking products and services for individual, business, governmental, and institutional customers. The company accepts checking, savings, and time deposit accounts; and offers real estate, commercial, industrial, residential, and consumer loans, as well as various other specialized financial services. It also provides private banking; and wealth and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans, as well as a range of wealth management services. In addition, the company invests in debt and equity securities; sells nonproprietary annuities and other insurance products; and offers small balance unsecured loans and secured loans primarily collateralized by automobiles and equipment, as well as engages in consumer discount loan and finance business. The company was founded in 1865 and is headquartered in Clearfield, Pennsylvania.
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.
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