Financial Analysis: ICICI Bank (NYSE:IBN) vs. VersaBank (NASDAQ:VBNK)


VersaBank (NASDAQ:VBNK – Get Rating) and ICICI Bank (NYSE:IBN – Get Rating) are both finance companies, but which company is better? We will compare the two companies based on institutional ownership strength, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Analyst Notes

This is a breakdown of recent ratings from VersaBank and ICICI Bank, provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
VersaBank 0 0 0 1 4.00
ICICI Bank 0 0 0 0 N / A

Profitability

This table compares the net margins, return on equity and return on assets of VersaBank and ICICI Bank.

Net margins Return on equity return on assets
VersaBank 23.07% 10.16% 1.28%
ICICI Bank 22.23% 13.02% 1.41%

Institutional and insider ownership

24.3% of VersaBank shares are held by institutional investors. Comparatively, 18.8% of ICICI Bank’s shares are held by institutional investors. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock will outperform the market over the long term.

Benefits and evaluation

This table compares revenue, earnings per share and valuation of VersaBank and ICICI Bank.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
VersaBank $75.30 million 3.50 $17.80 million $0.74 12.99
ICICI Bank $14.08 billion 4.47 $3.36 billion $0.88 20.59

ICICI Bank has higher revenue and profit than VersaBank. VersaBank trades at a lower price-to-earnings ratio than ICICI Bank, indicating that it is currently the more affordable of the two stocks.

Dividends

VersaBank pays an annual dividend of $0.08 per share and has a dividend yield of 0.8%. ICICI Bank pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. VersaBank pays 10.8% of its profits as a dividend. ICICI Bank pays 5.7% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years.

Summary

ICICI Bank beats VersaBank on 8 out of 12 factors compared between the two stocks.

About VersaBank (Get an assessment)

VersaBank, a Schedule I chartered bank, offers various banking products and services in Canada. The Company offers deposit products, such as guaranteed investment certificates, registered retirement savings plans, daily interest savings accounts and tax-free savings accounts, as well as deposit insurance. It also provides lending services, including point-of-sale financing which involves the purchase of loans and leases from financial companies operating in various sectors; and commercial banking services including commercial real estate, public sector/infrastructure financing, condominium financing and residential mortgages. The company was previously known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.

About ICICI Bank (Get an assessment)

ICICI Bank Limited provides various banking products and financial services in India and abroad. It operates through the retail banking, wholesale banking, treasury, other banking, life insurance, general insurance and others segments. The company offers savings, salary, retirement, current and other accounts; and fixed, recurring and security deposits. It also offers home, car, two-wheeler, personal, gold and business loans, as well as title and other loans; business loans, such as working capital financing, term loans, unsecured loans, loans without financial elements, financing for importers and exporters and secured loans for credit cards, as well as loans for new entities, schools and colleges; and credit, debit, prepaid, travel and corporate cards. In addition, the company offers insurance products; pocket wallet; fixed income products; investment products, such as mutual funds, gold monetization systems and initial public offerings, and other online investment services; and farmer financing, loans for tractors and micro-banking services, as well as other services to agro-dealers and processors and agribusinesses. In addition, it provides portfolio management, trading, foreign exchange, locker, private and NRI banking and cash management services; family assets and demat accounts; commercial and investment banking, capital market, custody, project and technology finance, and institutional banking, as well as internet, mobile and telephone banking. In addition, the company offers investment, brokerage, trading and securities underwriting services; and investment banking, trusteeship, housing finance and pension fund management services. As of March 31, 2021, it had a network of 5,266 branches, 14,136 ATMs, 1,786 insta banking kiosks and 2,713 ATMs. ICICI Bank Limited was founded in 1955 and is headquartered in Mumbai, India.



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Sarah J. Greer