Head-To-Head Comparison: Capitol Federal Financial (NASDAQ:CFFN) versus Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY)

Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY) and Capitol Federal Financial (NASDAQ:CFFN) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Institutional and Insider Ownership

88.5% of Capitol Federal Financial shares are owned by institutional investors. 2.8% of Capitol Federal Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Industrial & Commercial Bank of China Ltd. and Capitol Federal Financial”s 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	1.63	$51.27 billion	$2.88	6.62
Capitol Federal Financial	$420.24 million	2.66	$68.03 million	$0.65	13.69

Industrial & Commercial Bank of China Ltd. has higher revenue and earnings than Capitol Federal Financial. Industrial & Commercial Bank of China Ltd. is trading at a lower price-to-earnings ratio than Capitol Federal Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Industrial & Commercial Bank of China Ltd. and Capitol Federal Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industrial & Commercial Bank of China Ltd.	0	0	0	1	4.00
Capitol Federal Financial	0	3	1	1	2.60

Capitol Federal Financial has a consensus target price of $9.25, suggesting a potential upside of 3.93%. Given Capitol Federal Financial’s higher probable upside, analysts plainly believe Capitol Federal Financial is more favorable than Industrial & Commercial Bank of China Ltd..

Risk and Volatility

Industrial & Commercial Bank of China Ltd. has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, Capitol Federal Financial has a beta of 0.68, meaning that its stock price is 32% 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 3.9%. Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 3.8%. Industrial & Commercial Bank of China Ltd. pays out 26.0% of its earnings in the form of a dividend. Capitol Federal Financial pays out 52.3% 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. Industrial & Commercial Bank of China Ltd. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Industrial & Commercial Bank of China Ltd. and Capitol Federal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Industrial & Commercial Bank of China Ltd.	24.67%	8.75%	0.69%
Capitol Federal Financial	18.69%	8.01%	0.85%

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 Capitol Federal Financial

Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products, including savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit. It also provides various loan products, such as one- to four-family residential real estate loans, commercial real estate, commercial and industrial, construction loans, and small business loans, as well as consumer loans, which include home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; credit cards; mortgage loan; operates a call center; and invests in various securities. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, and a portion of the metropolitan area of greater Kansas City. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas.