Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY) vs. First Capital (NASDAQ:FCAP) Financial Contrast

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

Dividends

First Capital pays an annual dividend of $1.28 per share and has a dividend yield of 2.0%. Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.67 per share and has a dividend yield of 3.3%. First Capital pays out 22.4% 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. First Capital has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

11.6% of First Capital shares are owned by institutional investors. 4.1% of First Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares First Capital and Industrial & Commercial Bank of China Ltd.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Capital	$56.05 million	3.74	$16.37 million	$5.72	10.94
Industrial & Commercial Bank of China Ltd.	$208.16 billion	1.74	$51.27 billion	$2.88	7.08

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for First Capital and Industrial & Commercial Bank of China Ltd., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Capital	0	0	2	0	3.00
Industrial & Commercial Bank of China Ltd.	0	1	0	0	2.00

Volatility & Risk

First Capital has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Industrial & Commercial Bank of China Ltd. has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Profitability

This table compares First Capital 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
First Capital	27.14%	13.67%	1.49%
Industrial & Commercial Bank of China Ltd.	24.67%	8.75%	0.69%

Summary

First Capital beats Industrial & Commercial Bank of China Ltd. on 13 of the 16 factors compared between the two stocks.

About First Capital

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest-bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides residential mortgage loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, credit cards and other personal loans, and loans secured by savings deposits, as well as unsecured consumer loans. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.

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.