Critical Survey: Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY) vs. Northeast Community Bancorp (NASDAQ:NECB)

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

Earnings & Valuation

This table compares Industrial & Commercial Bank of China Ltd. and Northeast Community Bancorp”s top-line 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	1.58	$51.27 billion	$2.88	6.40
Northeast Community Bancorp	$103.62 million	3.69	$44.41 million	$3.04	9.13

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

Risk & Volatility

Industrial & Commercial Bank of China Ltd. has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, Northeast Community Bancorp has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Dividends

Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.67 per share and has a dividend yield of 3.6%. Northeast Community Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. Industrial & Commercial Bank of China Ltd. pays out 23.3% of its earnings in the form of a dividend. Northeast Community Bancorp pays out 32.9% 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. Northeast Community Bancorp has increased its dividend for 2 consecutive years. Industrial & Commercial Bank of China Ltd. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and target prices for Industrial & Commercial Bank of China Ltd. and Northeast Community Bancorp, 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
Northeast Community Bancorp	0	1	1	2	3.25

Northeast Community Bancorp has a consensus target price of $29.50, indicating a potential upside of 6.23%. Given Northeast Community Bancorp’s higher possible upside, analysts plainly believe Northeast Community Bancorp is more favorable than Industrial & Commercial Bank of China Ltd..

Institutional & Insider Ownership

53.2% of Northeast Community Bancorp shares are held by institutional investors. 7.1% of Northeast Community Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Industrial & Commercial Bank of China Ltd. and Northeast Community 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 Community Bancorp	27.21%	11.55%	1.99%

Summary

Northeast Community Bancorp beats Industrial & Commercial Bank of China Ltd. on 13 of the 18 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 Community Bancorp

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts, as well as certificates of deposits. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers financial planning and investment advisory services; and life insurance products and fixed-rate annuities. It operates full-service branches located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts; and loan production offices located in White Plains, New York, and New City counties in New York and Danvers, Massachusetts. Northeast Community Bancorp, Inc. was founded in 1934 and is headquartered in White Plains, New York.