Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY) vs. Northeast Bancorp (NASDAQ:NBN) Head to Head Survey

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

Dividends

Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.75 per share and has a dividend yield of 3.9%. Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Industrial & Commercial Bank of China Ltd. pays out 26.0% of its earnings in the form of a dividend. Northeast Bancorp pays out 0.3% 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.

Valuation and Earnings

This table compares Industrial & Commercial Bank of China Ltd. and Northeast Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Industrial & Commercial Bank of China Ltd.	$208.16 billion	1.64	$51.27 billion	$2.88	6.64
Northeast Bancorp	$385.07 million	2.79	$107.48 million	$12.72	10.29

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

Profitability

This table compares Industrial & Commercial Bank of China Ltd. and Northeast Bancorp’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%
Northeast Bancorp	27.91%	19.35%	2.22%

Volatility and Risk

Industrial & Commercial Bank of China Ltd. has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500. Comparatively, Northeast Bancorp has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Industrial & Commercial Bank of China Ltd. and Northeast Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industrial & Commercial Bank of China Ltd.	0	0	0	1	4.00
Northeast Bancorp	0	1	2	0	2.67

Northeast Bancorp has a consensus price target of $143.50, suggesting a potential upside of 9.60%. Given Northeast Bancorp’s higher possible upside, analysts plainly believe Northeast Bancorp is more favorable than Industrial & Commercial Bank of China Ltd..

Summary

Northeast Bancorp beats Industrial & Commercial Bank of China Ltd. on 10 of the 15 factors compared between the two stocks.

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 Northeast Bancorp

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.