Industrial and Commercial Bank of China (OTCMKTS:IDCBY – Get Rating) and National Bankshares (NASDAQ:NKSH – Get Rating) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.
Dividends
Industrial and Commercial Bank of China pays an annual dividend of $0.69 per share and has a dividend yield of 5.8%. National Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 4.5%. Industrial and Commercial Bank of China pays out 23.5% of its earnings in the form of a dividend.
Profitability
This table compares Industrial and Commercial Bank of China and National Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Industrial and Commercial Bank of China | 26.38% | 11.39% | 1.00% |
| National Bankshares | 38.29% | 11.16% | 1.22% |
Valuation & Earnings
This table compares Industrial and Commercial Bank of China and National Bankshares’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Industrial and Commercial Bank of China | $206.52 billion | 1.03 | $53.99 billion | $2.94 | 4.05 |
| National Bankshares | $53.41 million | 3.60 | $20.38 million | N/A | N/A |
Industrial and Commercial Bank of China has higher revenue and earnings than National Bankshares.
Analyst Recommendations
This is a summary of recent ratings and target prices for Industrial and Commercial Bank of China and National Bankshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Industrial and Commercial Bank of China | 0 | 0 | 0 | 0 | N/A |
| National Bankshares | 0 | 0 | 0 | 0 | N/A |
Risk and Volatility
Industrial and Commercial Bank of China has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, National Bankshares has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.
Institutional & Insider Ownership
25.0% of National Bankshares shares are held by institutional investors. 2.8% of National Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
National Bankshares beats Industrial and Commercial Bank of China on 7 of the 11 factors compared between the two stocks.
Industrial and Commercial Bank of China Company Profile (Get Rating)
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. It 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 corporate loans, trade financing, deposit taking activities, corporate wealth management services, custody activities, and various corporate intermediary services. The Personal Banking segment provides financial products and services to individual customers. This segment’s products and services comprise personal loans and cards, deposits, personal wealth management, and personal intermediary services. The Treasury Operations segment is involved in the money market transactions, investment securities, and foreign exchange transactions businesses, as well as in the holding of derivative positions. The company also offers e-banking services, investment banking, financial leasing, and insurance services. Industrial and Commercial Bank of China Limited was founded in 1984 and is based in Beijing, the People’s Republic of China.
National Bankshares Company Profile (Get Rating)
National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking products and services to individuals, businesses, non-profits, and local governments. The company accepts interest-bearing and non-interest bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit, health savings accounts, and individual retirement accounts. Its loan products include commercial and agricultural, commercial real estate, residential real estate, home equity, and various consumer loan products, as well as loans for the construction of commercial and residential properties. The company also provides business and consumer debit and credit cards; letters of credit, night depository services, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services; non-deposit investment and insurance products; and telephone, mobile, and Internet banking services. It operates 23 branch offices, a loan production office, and 22 automated teller machines in Southwest Virginia. National Bankshares, Inc. was founded in 1891 and is headquartered in Blacksburg, Virginia.
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