Bank of Nova Scotia (NYSE:BNS – Get Free Report) and Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.
Valuation and Earnings
This table compares Bank of Nova Scotia 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 | |
| Bank of Nova Scotia | $52.70 billion | 1.58 | $5.56 billion | $4.81 | 14.08 |
| Industrial & Commercial Bank of China Ltd. | $219.33 billion | 1.37 | $50.89 billion | $2.74 | 6.16 |
Profitability
This table compares Bank of Nova Scotia 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 | |
| Bank of Nova Scotia | 12.40% | 12.49% | 0.67% |
| Industrial & Commercial Bank of China Ltd. | 24.10% | 8.96% | 0.71% |
Analyst Ratings
This is a summary of recent recommendations for Bank of Nova Scotia and Industrial & Commercial Bank of China Ltd., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bank of Nova Scotia | 0 | 4 | 2 | 0 | 2.33 |
| Industrial & Commercial Bank of China Ltd. | 0 | 0 | 0 | 0 | 0.00 |
Bank of Nova Scotia currently has a consensus target price of $106.00, indicating a potential upside of 56.51%. Given Bank of Nova Scotia’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Bank of Nova Scotia is more favorable than Industrial & Commercial Bank of China Ltd..
Volatility and Risk
Bank of Nova Scotia has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Industrial & Commercial Bank of China Ltd. has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.
Insider and Institutional Ownership
49.1% of Bank of Nova Scotia shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
Bank of Nova Scotia pays an annual dividend of $3.21 per share and has a dividend yield of 4.7%. Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.61 per share and has a dividend yield of 3.6%. Bank of Nova Scotia pays out 66.7% of its earnings in the form of a dividend. Industrial & Commercial Bank of China Ltd. pays out 22.3% 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. Bank of Nova Scotia has raised its dividend for 14 consecutive years. Bank of Nova Scotia is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Bank of Nova Scotia beats Industrial & Commercial Bank of China Ltd. on 11 of the 16 factors compared between the two stocks.
About Bank of Nova Scotia
The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets segments. The company offers financial advice and solutions, and banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and retail automotive financing solutions. It also provides business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses. In addition, it provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternatives, and institutional funds. The Bank of Nova Scotia was founded in 1832 and is headquartered in Toronto, Canada.
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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