IBN vs. RY, MUFG, HDB, TD, SMFG, SAN, BBVA, BMO, ING, and CM
Should you be buying ICICI Bank stock or one of its competitors? The main competitors of ICICI Bank include Royal Bank of Canada (RY), Mitsubishi UFJ Financial Group (MUFG), HDFC Bank (HDB), Toronto-Dominion Bank (TD), Sumitomo Mitsui Financial Group (SMFG), Banco Santander (SAN), Banco Bilbao Vizcaya Argentaria (BBVA), Bank of Montreal (BMO), ING Groep (ING), and Canadian Imperial Bank of Commerce (CM). These companies are all part of the "commercial banks, not elsewhere classified" industry.
Royal Bank of Canada (NYSE:RY) and ICICI Bank (NYSE:IBN) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, community ranking, dividends, analyst recommendations, institutional ownership and media sentiment.
Royal Bank of Canada has higher earnings, but lower revenue than ICICI Bank. Royal Bank of Canada is trading at a lower price-to-earnings ratio than ICICI Bank, indicating that it is currently the more affordable of the two stocks.
Royal Bank of Canada received 450 more outperform votes than ICICI Bank when rated by MarketBeat users. However, 63.33% of users gave ICICI Bank an outperform vote while only 55.78% of users gave Royal Bank of Canada an outperform vote.
Royal Bank of Canada pays an annual dividend of $4.12 per share and has a dividend yield of 3.9%. ICICI Bank pays an annual dividend of $0.17 per share and has a dividend yield of 0.6%. Royal Bank of Canada pays out 51.1% of its earnings in the form of a dividend. ICICI Bank pays out 12.2% 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. Royal Bank of Canada has raised its dividend for 14 consecutive years and ICICI Bank has raised its dividend for 3 consecutive years. Royal Bank of Canada is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
45.3% of Royal Bank of Canada shares are held by institutional investors. Comparatively, 18.2% of ICICI Bank shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
ICICI Bank has a net margin of 24.65% compared to ICICI Bank's net margin of 12.12%. Royal Bank of Canada's return on equity of 16.47% beat ICICI Bank's return on equity.
In the previous week, Royal Bank of Canada had 22 more articles in the media than ICICI Bank. MarketBeat recorded 26 mentions for Royal Bank of Canada and 4 mentions for ICICI Bank. Royal Bank of Canada's average media sentiment score of 0.67 beat ICICI Bank's score of 0.38 indicating that ICICI Bank is being referred to more favorably in the news media.
Royal Bank of Canada presently has a consensus target price of $133.25, suggesting a potential upside of 25.25%. Given ICICI Bank's higher possible upside, research analysts clearly believe Royal Bank of Canada is more favorable than ICICI Bank.
Royal Bank of Canada has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, ICICI Bank has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Summary
Royal Bank of Canada beats ICICI Bank on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding IBN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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