Industrial and Commercial Bank of China (OTCMKTS:IDCBY) vs. WSFS Financial (NASDAQ:WSFS) Critical Review

WSFS Financial (NASDAQ:WSFS) and Industrial and Commercial Bank of China (OTCMKTS:IDCBY) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Valuation & Earnings

This table compares WSFS Financial and Industrial and Commercial Bank of China”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WSFS Financial	$1.05 billion	2.89	$269.16 million	$4.38	11.76
Industrial and Commercial Bank of China	$209.49 billion	1.06	$53.57 billion	N/A	N/A

Industrial and Commercial Bank of China has higher revenue and earnings than WSFS Financial.

Profitability

This table compares WSFS Financial and Industrial and Commercial Bank of China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WSFS Financial	18.78%	10.56%	1.29%
Industrial and Commercial Bank of China	N/A	N/A	N/A

Volatility & Risk

WSFS Financial has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Industrial and Commercial Bank of China has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.

Dividends

WSFS Financial pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Industrial and Commercial Bank of China pays an annual dividend of $0.60 per share and has a dividend yield of 4.8%. WSFS Financial pays out 13.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations for WSFS Financial and Industrial and Commercial Bank of China, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WSFS Financial	0	3	2	0	2.40
Industrial and Commercial Bank of China	0	0	0	0	0.00

WSFS Financial presently has a consensus target price of $59.75, indicating a potential upside of 16.02%. Given WSFS Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe WSFS Financial is more favorable than Industrial and Commercial Bank of China.

Insider & Institutional Ownership

88.5% of WSFS Financial shares are held by institutional investors. 1.3% of WSFS Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

WSFS Financial beats Industrial and Commercial Bank of China on 11 of the 15 factors compared between the two stocks.

About WSFS Financial

WSFS Financial Corporation operates as the savings and loan holding company for the Wilmington Savings Fund Society, FSB that provides various banking services in the United States. It operates through three segments: WSFS Bank, Cash Connect, and Wealth Management. It offers various deposit products, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts, and certificates of deposit, as well as accepts jumbo certificates of deposit from individuals, businesses, and municipalities. The company also provides a range of loans, which comprise fixed and adjustable rate residential loans; commercial mortgage and commercial loans; commercial construction loans; commercial loans for working capital, financing equipment and real estate acquisitions, business expansion and other business purposes; and consumer credit products, such as home equity loans, home equity lines of credit, automobile loans, unsecured lines of credit, and other secured and unsecured personal installment loans. In addition, it offers insurance products; planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients; retail securities and insurance brokerage services; mortgage and title services; residential mortgage and refinancing solutions; and leases small equipment and fixed assets, as well as provides financial planning, customized investment strategies, brokerage products, fiduciary, and wealth management services. Further, the company provides ATM vault cash, smart safe, and other cash logistics services; and online reporting and ATM cash management, predictive cash ordering and reconcilement services, armored carrier management, loss protection, and deposit safe cash logistics services, as well as trustee, agency, bankruptcy administration, custodial and commercial domicile services. The company was founded in 1832 and is based in Wilmington, Delaware.

About Industrial and Commercial Bank of China

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.